sample research proposal for phd in business administration

Research Proposal Example/Sample

Detailed Walkthrough + Free Proposal Template

If you’re getting started crafting your research proposal and are looking for a few examples of research proposals , you’ve come to the right place.

In this video, we walk you through two successful (approved) research proposals , one for a Master’s-level project, and one for a PhD-level dissertation. We also start off by unpacking our free research proposal template and discussing the four core sections of a research proposal, so that you have a clear understanding of the basics before diving into the actual proposals.

• Research proposal example/sample – Master’s-level (PDF/Word)
• Research proposal example/sample – PhD-level (PDF/Word)
• Proposal template (Fully editable) 

If you’re working on a research proposal for a dissertation or thesis, you may also find the following useful:

• Research Proposal Bootcamp : Learn how to write a research proposal as efficiently and effectively as possible
• 1:1 Proposal Coaching : Get hands-on help with your research proposal

PS – If you’re working on a dissertation, be sure to also check out our collection of dissertation and thesis examples here .

FAQ: Research Proposal Example

Research proposal example: frequently asked questions, are the sample proposals real.

Yes. The proposals are real and were approved by the respective universities.

Can I copy one of these proposals for my own research?

As we discuss in the video, every research proposal will be slightly different, depending on the university’s unique requirements, as well as the nature of the research itself. Therefore, you’ll need to tailor your research proposal to suit your specific context.

You can learn more about the basics of writing a research proposal here .

How do I get the research proposal template?

You can access our free proposal template here .

Is the proposal template really free?

Yes. There is no cost for the proposal template and you are free to use it as a foundation for your research proposal.

Where can I learn more about proposal writing?

For self-directed learners, our Research Proposal Bootcamp is a great starting point.

For students that want hands-on guidance, our private coaching service is recommended.

Psst… there’s more!

This post is an extract from our bestselling short course, Research Proposal Bootcamp . If you want to work smart, you don't want to miss this .

12 Comments

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• How to Write a Great PhD Research Proposal | FindAPhD.com

How to Write a Great PhD Research Proposal

Written by Mark Bennett

You'll need to write a research proposal if you're submitting your own project plan as part of a PhD application. A good PhD proposal outlines the scope and significance of your topic and explains how you plan to research it.

It's helpful to think about the proposal like this: if the rest of your application explains your ability to do a PhD, the proposal demonstrates the actual PhD you plan to do. Of course, being able to effectively plan and explain a research project is one of the key qualifications for being able to complete one, which is why the proposal is such an important part of the PhD application process.

Thankfully, the secret to writing a good research proposal isn't complicated. It's simply a case of understanding what the proposal is for, what it needs to do and how it needs to be put together.

On this page

What is a phd research proposal.

First things first, do you need a research proposal for your PhD? It depends on the kind of project you want to do:

• If your PhD is advertised by a university, you probably won't need to submit a research proposal for it. The broad aims and objectives for your PhD will already be defined: you just need to prove you're the right person to do it.
• But, if you're proposing your own research topic to research within a university's PhD programme, you will need to write a proposal for it (the clue is in the word "proposing")

As a rule, advertised PhDs are very common in STEM subjects, whereas Arts, Humanities and Social Science students are more likely to propose their own PhDs.

Some PhD programmes actually wait and ask students to develop their research proposal during the degree (usually after they've completed some initial training). This is normal in the USA , but it's becoming more common for some UKRI-funded UK PhDs.

For the purposes of this guide we're going to assume that you do need to write a good research proposal for your PhD application. So let's explore what's involved in that.

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What should a research proposal for PhD admission include?

It's natural to be a little intimidated at the thought of structuring a PhD proposal, particularly if you've never written anything like this before.

But here's the thing: a research proposal isn't a fiendish test designed to catch you out and stop you ever doing a PhD. It's actually much more boring than that.

All a research proposal really is is a document that demonstrates three things:

• Your PhD is worthwhile
• Your PhD is feasible
• You are capable of completing it at this university

Or to put it even more simply: the PhD is worth doing, it's doable and you can do it.

Demonstrate your PhD is worthwhile (the what and the why)

A successful PhD project has to make a significant original contribution to knowledge. If it doesn't, it won't meet the criteria for a doctoral degree and will probably fail the viva exam .

Your PhD proposal itself doesn't have to meet those criteria (or pass a viva!) but it does need to indicate that your PhD project eventually will.

It does that by first demonstrating that your research topic is original. That means nobody else has studied this same topic (or one very similar) before.

There are all sorts of ways a PhD can be original. You might examine new data or primary sources, to look at existing material from a fresh perspective, or deal with the impact of new events. It doesn't matter how your project is original, so long as your proposal is really specific about what makes it original.

You also need to explain why your proposed research will be academically significant. To do this properly, you'll need to acknowledge relevant existing scholarship and explain how your research will relate to it. You don't need to be exhaustive at this point, but you should be able to show how your PhD will contribute to its field and – ideally – indicate some of the gaps in knowledge it will aim to fill.

The final step in demonstrating your PhD is worthwhile is to suggest what will become possible as a result of your research. How could other researchers use or build upon your results? What might closing those gaps in academic knowledge mean for audiences outside the unviversity?

Demonstrate your PhD is feasible (the how)

It isn't enough just to show that your research is worth doing; it also needs to actually be doable.

The length of a full-time PhD is around three to four years in most countries (it's longer in for a PhD in the USA , but you don't spend all that time doing research).

Three years may seem like a long time, but researching a PhD is a lot of work and you'll probably spend at least some of your time on other activities like teaching, conference presentations or even publication.

So, one of the things your proposal needs to do is demonstrate that your project is feasible: that it fits within the scope of a PhD.

The most important criteria for this is to be clear about what you plan to do. It should be obvious from your proposal what the scope of your project is – what is and isn't included within it.

You also need to outline how you plan to go about your research. Where will you start and what order do you expect to proceed in? Is the logic for that obvious? If not, it's probably a good idea to explain it.

Finally, you need to explain the methodology you plan to use. This could include techniques for collecting data and sources, theoretical perspectives for analysing them – or both. You may also need to detail specific equipment you expect to use or fieldwork you'll need to undertake (including trips to archives or other external resources).

None of this needs to be exact or completely final. The key word here is 'plan' – but you do need to have one.

Demonstrate that you can complete it at this university (the who and the where)

So far we've thought about the project itself: what makes it worth doing and how it's going to get done. But your proposal also needs to address the who and the where: why are you the right person to carry out this research, and why do you want to do it at this particular university?

The first part of this is easier than it probably looks. Writing a good research proposal demonstrates enthusiasm for your project much more convincingly than simply saying you're very interested in it (a classic case of 'show, don't tell').

You also don't need to repeat your grades and academic achievements (other parts of your PhD application will cover those). Instead, try to underline experiences that relate to this project. Has a particular module or Masters dissertation topic prepared you with useful subject knowledge or methodological skills? If so, highlight it.

It's also fine, within reason, to be honest about the skills you don't have and to identify your training needs. This shows you're being practical about your project and thinking seriously about what it will require. Just make sure you can realistically acquire the skills and training you need within the time available (this goes back to the feasibility).

Showing your project is a good fit for the university is also relatively simple. There should already be some reasons why you've chosen this university for your PhD so make sure you explain what they are. Perhaps there's a particular supervisor you'd like to work with , or facilities and resources your research could use. The key is to emphasise the fit between the project and the university – so don't just say you want to research there because it's highly ranked .

PhD research proposal structure

Hopefully the above sections have given you a few ideas for the things your proposal needs to include. Let's be honest though, the scariest thing about a proposal isn't deciding what to include: it's actually writing it.

But, if we flip that on its head, we remember that all a research proposal really is is a piece of writing that follows a pretty standard format. And that's a lot less scary.

Research proposal structure

Because proposals for PhD all have to do the same things, they mostly follow a similar structure. Yours will probably go something like this:

• Title – Keep it simple and descriptive: the clever alliteration and quotes can come later when you write up your thesis. For now, you just want the person reading this to know exactly what your research is about and, perhaps, which prospective supervisor to send it to.
• Overview – Start by defining your research question (the what) and explaining how it contributes to current work in your field (the why). This is also a good place to reference one or two pieces of scholarship: the full literature review can wait until your PhD begins, but you should show that you have some understanding of relevant academic research.
• Methodology – Make sure the reader understands the practical and / or theoretical approaches you'll take to your research. What data will you collect, how will you collect it and how will you analyse it? Ideally refer to relevant research methods and models. It's also a good idea to provide some sort of roadmap for how you'll go about things. Don't worry, you can change it later (and you will).
• Outcomes and impact – What will exist as a result of your research (other than just another PhD on a library shelf) and what will it make possible? You don't need to identify every specific outcome from your project (blue sky research is fine) but you should think about what some potential outcomes might be.

You probably won't need to include a specific conclusion - it should be obvious, by now, what your project is doing, how you're going to do it and why that matters. A quick summary sentence is fine though, if you think it will help.

Writing tips

Being able to effectively communicate academic concepts, ideas and results is a key skill for PhD research in all subjects . Think of your proposal as a chance to demonstrate this.

The good news is that the key principles of good proposal writing aren't that different from other work you've probably done as a Bachelors or Masters student:

• Be clear – The person reading your research proposal should know exactly what it is you're proposing to research, with no room for ambiguity and confusion. This is important on a practical level (they need to know where to send it) but it's also important to the success of your application: a confusing proposal suggests a confused project. Try having a friend read it and ask them "do you know what it is I'm proposing to do here?" (even if they don't understand the details).
• Be concise – You will have more ideas than you can include in your proposal. That's fine. Choose the best ones and leave the others for your interview .
• be coherent – Follow something like the structure above. Don't start with your methodology, then say what it is you want to research.

How long should a PhD research proposal be?

Honestly? As long as the university asks for it to be. Most will have guidelines and you should follow them closely if so.

If you honestly can't find a suggested word count for your proposal, then consider asking a prospective supervisor . If you still aren't sure, aim for somewhere between 1,000-2,000 words .

As a very general rule, Arts, Humanities and Social Sciences are a bit longer than STEM proposals (and a lot of STEM students don't have to write one anyway, as we've explained).

Research proposal for PhD admission - dos and don'ts

Research proposals are a popular topic over on the FindAPhD blog , where we've shared stories of how students wrote theirs , along with mistakes to avoid and a counter-intuitive look at the things a PhD proposal doesn't actually need to do .

Here are a few general tips and mistakes to avoid:

#1 Give yourself enough time to do a good job

Preparing to write a PhD proposal takes time and effort. None of this is wasted as the process of evaluating and framing your ideas for a proposal will improve your project plan immensely. So will the need to decide which ideas to include.

But you need time and space to do that, so make sure you get it. How long it will take to write your PhD proposal is heavily dependent on your personal working style, but you'll likely need to give yourself at least a few weeks to do a good job.

#2 Set out to impress

A good proposal isn't a begging letter. You're approaching the university with a great idea that's going to contribute to and enhance their research. Be honest, be realistic, but don't be unnecessarily humble. They should want you and your project.

#3 Demonstrate original thinking!

You may not need to present original research findings yet, but your proposal does need to present original ideas – and it should be clear why and how those ideas are original.

Make sure you indicate how your project is going to expand, enhance or even correct existing work in your field. Remember that making an "original contribution to knowledge" is a key part of what a PhD is .

#1 Send the same proposal to several universities

A good proposal needs to explain why you want to do your research at a particular university. That's a big part of the feasibility (the fit between project, person and place) and methodology (how are you going to use this university's equipment and archives; when and where will you need to travel).

It's OK to apply to more than one university in parallel, but, in that case, you're writing research proposals .

#2 Use online proposal templates (without evaluating them first!)

It can be tempting to search for PhD proposal samples on the internet, but make sure you evaluate what you find. Some websites may host old proposals from previous PhD students, but there's no way of knowing how relevant these are to your subject and university – or if they were even successful! More 'generic' research proposal examples can offer guidance, but they won't be tailored to your specific project.

The best place to look for a PhD proposal sample is your university. Consider asking your supervisor if they can share a good proposal from a previous student in your subject – or put you in touch with a current student you can ask.

#3 Confuse the proposal with the PhD

We've covered this on the blog , but it's simple enough to include here too.

You're setting out to do a PhD, but you (probably!) haven't done one yet. So you don't need to include research findings, in-depth analysis or a comprehesive literature review. You need to make a case for the research and analysis you want to do.

#4 Ignore your university's help and guidance

The advice on this page is necessarily quite general. We're considering adding guides to writing PhD proposals in specific subjects in future but, for now, the best place to get specific advice for your academic field is probably the university you're applying to.

See if you can get some subject-specific tips by contacting a supervisor , or just checking with the admissions team for your department.

And remember: if they give you a structure and a word count, stick to it.

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We've answered some of the most frequently asked questions about PhDs, covering course types, applications, funding and the benefits of further study.

Getting ready to apply for a PhD? Our guides explain research proposals, references and entry tests for doctoral programmes.

Our guide explains how to contact a potential PhD supervisor to discuss your proposal or ideas with them before applying.

A checklist of the things you'll need to do when making an international PhD application, from meeting the entry requirements to sorting out your visa.

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Presenting a PhD research proposal: A guide for commerce students

• August 2019
• African Journal of Science Technology Innovation and Development 13(3):1-15

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• The University of Warwick

How to write a strong DBA research proposal

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Recruitment and Business Development Executive Arione McQueenie, answers the questions she most commonly gets asked about how to write a strong research proposal when applying for the Doctor of Business Administration.

As part of your application to the Doctor of Business Administration at Warwick Business School, you must submit a research proposal which outlines what you are interested in researching as part of the programme. This proposal should centre on a specific problem within your organisation that you are looking to tackle using the practical applied research and organisation interventions you will design as part of the DBA.

One of the most common questions I am asked in my capacity as Recruitment Executive for the DBA is ‘what do I include in my research proposal?’ When considering this question, it is important to remember that although the DBA is an equivalent level to a PhD, the focus of the programme is on applied research rather than theoretical knowledge. Therefore, the proposal does not need to be as in-depth or academic as a PhD proposal. To help you get started with your DBA proposal, below are some FAQ’s, 

What topic should I write about in my DBA research proposal?

A DBA project is motivated by a business problem in search of a solution. Your DBA proposal should outline the problem you intend to investigate and why this is important to you and your business.

Does it have to be a problem facing my business?

Ideally, yes. Your research problem needs to be something you are able to actively design and implement interventions for. This means students will most likely conduct their research within their own business, although in some cases they will consider other organisations in an industry they are interested in (for example, in the case of candidates who work as consultants).

What are the key sections / information to include?

A good DBA proposal should include what you are interested in researching, and how you intend to use the academic insights offered by the programme to tackle your specific issue. Ideally, a good proposal should address the following questions:

• What is the business problem or opportunity you intend to investigate?
• Why is this practically and theoretically relevant?
• What is the domain/literature (e.g. strategy, entrepreneurship etc.) within which your problem is situated?
• What does this literature discuss about your problem or opportunity and how it can be addressed?
• Where do you plan to conduct your empirical study and how do you plan to get access to the field site?
• How do you plan to collect your data (e.g. interviews, observation, surveys, etc.)?
• How will practitioners benefit from your research?

How long should it be?

Your proposal should be roughly five pages long. This allows us to understand the feasibility of your research as well as allowing better matching with potential supervisors. You should attach the proposal, along with your CV, to your application. We will be unable to assess your application if the research proposal is not attached and this may delay the admissions process.

Any hints & tips?

Get started writing your proposal as soon as possible, as it is always best to give yourself time for edits and rewrites. However, don’t get too caught up in trying to write the perfect proposal, as this only forms a small part of your application. Remember that your problem and ideas to approaching it will probably change throughout the programme; therefore, you don’t have to have all the answers now.

I would also recommend researching our subject groups within WBS. It is important that your research project falls into one of our areas of interest, otherwise we will not have suitable faculty to allocate as your supervisor.

Next Steps:

The DBA only has one intake per year, in October. You can find more information on how to apply via our website.

If you would like to find out more about the programme, or if your question was not answered above, you can email [email protected]

Arione McQueenie Recruitment and Business Development Executive

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• School of business and management
• PhD and Research

Preparing a Research Proposal

Considering applying for a PhD? Explore our advice on everything you need to consider - from finding a supervisor to drafting a research proposal.

All applicants to our PhD programme should follow the simple steps below:

Identify a potential supervisor

Before making a formal application to our PhD programme you should discuss your ideas with a potential supervisor within the School. 

Develop your research proposal

Your research proposal (of no more than 2000 words) is an important element of the selection process. You should work closely with your potential supervisor to develop this.

Gather the necessary documents

Your application will need to be supported by a number of other documents. Before applying online, make sure you have prepared the following documents:

1. Completed application form (see step 4) 2. CV 3. Research proposal (2000 words excluding references) 4. Statement of purpose (one A4 side) 5. Full transcripts 6. Two academic references 7. Proof of English language ability (for applicants from non-English speaking countries)

Complete the online application form

All applications are to be  submitted online to the Admissions and Recruitment Office at Queen Mary, in the first instance. 

Identifying a Topic

Before applying for a PhD, there are a number of questions you need to consider. Most important amongst these are:

• Does your proposed PhD topic fit with the broader research interests of the School?
• Does the School include members of staff with specialist expertise in your chosen area of research?

If you think your proposed project fits within the broad interests of the School, the next step is to identify a member of academic staff who may be able to supervise you, and who can help you develop your research proposal. You can do this by viewing the individual research interests listed on our   staff pages ,  or through the   find an expert tool .  You can also find information by  viewing the   Research Centre   pages.

Finding a Supervisor

Finding the right supervisor.

If you think your proposed project fits within the broad interests of the School, the next step is to identify a member of academic staff who may be able to supervise you, and who can help you develop your research proposal. You can do this by viewing the individual research interests listed on our   staff pages ,  or through the   find an expert tool .  You can also find information by  viewing our  Research Centre   pages.

Your research proposal is a key part of your application. It is one of the key criteria that the School (and funding bodies) uses to differentiate between different applicants. 

The research proposal should not exceed 2000 words. Bibliography, references and appendices are excluded from the wordcount. If your proposal goes over the word limit, you may be marked down.

Before making your final application, it is likely that you will need to revise your proposal several times. Whilst your potential supervisor may help you do this, it is important that you present them with as clear a proposal as you can, when you first make contact with them.

The keys to writing a strong research proposal are:

• To formulate a precise, interesting research question; this may take the form of a hypothesis to be tested, or a more open-ended enquiry.
• To establish the relevance and value of the proposed research question in the context of current academic thinking.
• To outline a clear and practical methodology which enables you to answer the research question, and to describe and evaluate any data or source material you will draw upon.
• To suggest what you hope to discover at the end of your research and what new areas it might open up.
• To demonstrate that your research will not take longer than three years.

Statement of Purpose

Applicants must also submit a Statement of Purpose within their application.

Candidates should use the Statement of Purpose to set out information which is NOT set out in their Research Proposal. The Statement of Purpose should be a one side A4 document, containing the following information:

• Previous academic and other experience relevant to your proposed research.
• Why you wish to undertake this research at Queen Mary (thinking about where the project fits with the School and supervisors research interests).
• What research training and professional preparation you have already received.
• Any further training you think you may need to complete the PhD.
• Any ethical issues you will need to consider in undertaking your research.

Entry Requirements

We are committed to appointing only the very best candidates to our PhD programme. Applications are accepted based on their previous academic performance, the quality of their research proposal and the availability of two suitable members of staff to supervise the chosen topic. Our current entry criteria are:

• Undergraduate degree with First Class Honours.
• Masters (MA, MSc or MRes, usually not an MBA) at Distinction level in Business, Management or discipline related to your research topic.
• Overall IELTS score of 7 with 6.5 in writing at the time of application, if English is not your first language.
• Applicants must be based in London for the duration of the programme.

We normally expect to see examples of First Class academic work (marks of 70 or above).

Borderline cases are considered when applicants have relevant work experience.

Funding your PhD

Fees and funding.

Undertaking a PhD is a serious financial commitment, and involves careful financial planning at the time of application and for the duration of the programme. Prices will almost inevitably rise and you must allow for this when planning your finances. Your costs will comprise both tuition fees and living costs.

Tuition fees

Full tuition fee information is available on Queen Mary's tuition fee pages .

A number of University and external funding opportunities are available to PhD research students. Find out more on the University's  scholarships web page .

Get in touch

If you have any questions, please do not hesitate to contact us:

PhD Assistance

How to write a phd research proposal on business management .

For a PhD management student venturing into finalizing their topic for research , the first step before beginning their research will be to convince the approval committee of their project. The document that assists this process is the research proposal. Writing a research proposal could be facile when approached systematically.

The research proposal is not mandatory in some cases; nevertheless, writing one satisfies other purposes than getting approval for the project. Hence, it is essential to understand what a research proposal is, what it contains.

The document is approximately 3000-4000 words long, depending on the university requirements, designed to give an outline of the research proposed, along with the limitations and constraints it may face, the cost it would require, the time it would take, the objectives and the expected impact the results would have on the field.

A word of advice for the ones stuck in the process of proposal writing for too long, Management research proposal writing services   understand your proposal needs and assists you in writing a winning bid.

Evaluating the ideas

The whole idea behind awarding the doctoral title for a research and the researcher is the contribution of new concepts, ideas, and knowledge via their study. Hence, it is imperative that the research is original and this is a pre-requisite for any committee whose approval stands between the idea and the commencement of the project. The research proposal, thus, is a tool to evaluate the originality of the research. It puts forth a sound enunciation of the quality of the ideas behind the research and an evaluation of the researcher’s proficiency in their selected domain. Researches in management science deal with one of the two things, development of new theories or finding a solution for an existing problem in practice. Thus, the faculty of the researcher to identify and effectively deal a solution to a problem forms the crux of the bid.

How to write a research proposal:

Title Page:

Provide a working title of your research in concern. Though this title may not be the final one, it will express your research ideas in a transparent manner.

In this section give a concise notion regarding the domain of study by outlining the scope that you are covering in the research.

Research problem :  

Discuss problems that you want to study and dedicate a few lines for explaining the significance of doing so.

Literature Review :

The proposal should lay down your awareness of the essential literatures in your topic. The arguments that you are going to support should also be outlined in the proposal. Notwithstanding, identifying the present gaps is very important. While you are going through important literature in your subject, you must precisely demonstrate in what way they are pertinent to your area of study. You should have fine grasp that a PhD is an original contribution and there should be clear explanation that your proposed area is not a topic of study earlier.

Important research questions:

Following the literature review, you would have identified a research problem. From this, you will be in a better position to pose a research question. It is good if you pose at least 3 research questions.

Methodology:

This element talks about the way you are going to perform the research while also providing the reason why a particular is chosen; the merits and demerits, if any, of the methods together form the methodology. Sketch an outline of the limitations you may encounter during the research.

Timeframe: 

Here you delineate the time frame of your research. This section informs of the time scheduled for each task in the process.

References :

It is very essential to provide all the references when you complete your proposal. Moreover, formatting the document is very important; ensure that it is consistent with the recommended style of your university.

If everything mentioned above happens to go over your head and you feel suffocated about the whole prospect, do consider approaching Business Management dissertation writing help, who understands your proposal concerns and helps in framing a proper research proposal.

Keep in mind that the research proposal is not carved in stone. It is a provisional document and will undergo vast changes in the ongoing PhD course. At the same time, it is a pivotal document that helps the committee to understand your interest towards the research. So don’t consider it trivial and ensure to make it as appealing as possible.

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Examples of research proposals

How to write your research proposal, with examples of good proposals.

Research proposals

Your research proposal is a key part of your application. It tells us about the question you want to answer through your research. It is a chance for you to show your knowledge of the subject area and tell us about the methods you want to use.

We use your research proposal to match you with a supervisor or team of supervisors.

In your proposal, please tell us if you have an interest in the work of a specific academic at York St John. You can get in touch with this academic to discuss your proposal. You can also speak to one of our Research Leads. There is a list of our Research Leads on the Apply page.

When you write your proposal you need to:

• Highlight how it is original or significant
• Explain how it will develop or challenge current knowledge of your subject
• Identify the importance of your research
• Show why you are the right person to do this research
• Research Proposal Example 1 (DOC, 49kB)
• Research Proposal Example 2 (DOC, 0.9MB)
• Research Proposal Example 3 (DOC, 55.5kB)
• Research Proposal Example 4 (DOC, 49.5kB)

Subject specific guidance

• Writing a Humanities PhD Proposal (PDF, 0.1MB)
• Writing a Creative Writing PhD Proposal (PDF, 0.1MB)
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Sample research proposal for PhD

Related Papers

Irene C L Ng

This paper presents a theoretical framework of advance demand through six propositions. The framework introduces the concept of acquisition and valuation risks and suggests that advance demand distribution is rooted in the trade-off between them. Furthermore, since advance buyers may not consume, firms may be able to re-sell relinquished capacity. The study then proposes how refunds could provide additional revenue to firms.

Service Industries Journal

Danae Gallegos

Purpose–The purpose of this paper is to highlight why service firms have difficulty in establishing channels and how transaction costs increase as a result. The paper shows how such difficulties may be overcome a mechanism that uses service capacity strategically. Design/methodology/approach–The paper uses a case study approach, and conducts a transaction cost analysis of the archival data of a cruise line along with the contract between the cruise line and a tour operator.

Purpose – The purpose of this paper is to study the non-consumption of a service by advance buyers, the re-selling of relinquished capacity at spot time and the effect on the pricing of advance and spot demand of services. Design/methodology/approach – The paper employs mathematical economics modeling technique. Findings – The model shows that advance prices are always lower than spot prices due to the non-consumption effect and also that providing a refund to advance buyers, as insurance against non-consumption, may be. By modeling in the capacity of the firm, the paper also presents the firm’s capacity conditions when the firm does not sell in advance and also when market failure occurs i.e. when the firm does not sell in advance nor at consumption time. Research limitations/implications – The model does not consider uncertainty in the spot price and assumes a one-stage optimization. Furthermore, the model extension with refund is numerically derived. Practical implications – This model informs industry on the significance of non-consumption of a service and the re-selling of relinquished capacity. It also highlights the importance of the interaction between capacity and refunds in advance and spot selling. Originality/value – This paper contributes to extant literature by demonstrating that when heterogeneous demand behavior is explicitly modeled with non-consumption, capacity and refunds, firms would then be able to understand where and how service revenue is being obtained (higher price or higher demand) and the impact of various sensitivities on revenue.

Since service production and consumption are inseparable, many service firms sell their capacity in advance. This paper examines the optimality and practice of advanced sale of service capacity under duopolistic competition. Using a game-theoretic approach, it attempts to explain why, despite sophisticated practices of advanced sale in many service industries, many service firms still do not sell in advance. It demonstrates that competition and market price sensitivity to a firm’s capacity can impact not only a firm’s decision to sell in advance, but also its pricing and capacity allocation decisions.

Should service firms sell in advance? Using a theoretical approach, we study the optimality of advanced sale of capacity for a monopolistic service firm and examine the impact of market price sensitivity on the optimal price and capacity allocations for advanced sale. We show that when firms undertake advanced sale, capacity utilization and profits are higher even though prices for sale in advance are discounted.

Abstract: This paper takes an interdisciplinary approach towards revenue management, incorporating economics and marketing concepts and proposing that firms employ a dynamic service differentiation so that consumer needs are met more closely. To locate market segments, the paper proposes that firms employ segmentation based on self-selection, providing consumers with an array of choices that are truth revealing and allowing firms to price discriminate without the need to predetermine segments.

Intermediating services are relatively new in research. This study explores how consumers may determine the value of intermediating services and the extent on willingness to pay. We investigate a mobile payment technology that intermediates payments facilitated by a telecommunication company and a bank. We show that a derived effect may persuade consumers to pay higher for the intermediating service when the items purchased has higher surplus to justify the consumption of the service. Our study also shows that money has polarity, in that money that is ‘owned’ by the individual is viewed differently from money ‘not owned’.

Arbie Always

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