![]() Optical Switching The need for Optical Switching What is Optical Switching? Optical Switching Overview Switching In Optical Networks. Electronic switching Switching In Optical Networks. All-Optical switching Generic forms of. Author: Justin Luu (00047629) Warning: This assignment has been written by an undergraduate student of Communication Networks of UTS. Technological Aspects of Optical Switching. 2.1 Types of Optical Switches. Recently published articles from Optical Switching and Networking. ![]() Optical Switching Middleware for the Opt. IPuter . You can download the paper by clicking the button above. ![]() ![]() 17-09-2016 2/2 Optical Switching. Other Files Available to Download
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Busting Six Myths About Customer Loyalty Programs - HBS Working Knowledge. There are three ways to differentiate in retailing: location, location, and location. Rental car rewards points for people seeking incentives and deals on their car rentals. At FOX, we have one of the best car rental rewards programs.The problem is that as markets mature, location becomes less potent as a competitive advantage because the consumer has a growing abundance of convenient choices. That's one reason why mass retailing in mature markets is a sector notorious for its lack of differentiation between players. Once location has played out its magic, retailers tend to get squeezed in a business characterized by the infernal duo of low margin and high fixed cost. In such businesses, price wars are never far away. Creating non- price differentiation is difficult in retail as well because development of such advantages takes time and is difficult to execute. Join over 90,000 restaurants who have grown through financing and marketing from Rewards Network. Get started with a no-obligation quote today. Explore the best rewards credit card programs including Capital One, Chase, Citi, and many more. Find the best credit card rewards that fit your lifestyle. For the most part, luxury hotel brands like Four Seasons, Ritz-Carlton, Peninsula, and Mandarin Oriental do not have loyalty programs. Their philosophy is summed up. All the while, low- price players are constantly looming to pounce. It is therefore not surprising that many retailers have adopted loyalty programs as a convenient mechanism of meaningful differentiation. Ultimately, loyalty programs should offer incentives for shoppers to reduce their store switching by offering them better value. Loyalty programs have the added advantage of not taking much time to establish, making the threat of price wars from competing retailers less credible. Uncertainties, Ambiguities, And Doubt. The many advantages of loyalty programs have been well debated in the massive literature available on the subject. Yet, there remain uncertainties, ambiguities, and doubts in the minds of many retailers over whether loyalty programs offer a sustainable and profitable business model. Retailers such as Sainsbury's in the United Kingdom illustrate this hesitation. They were early adopters of loyalty programs but dropped them, claiming they were too costly without compensating tangible benefits. In this paper we want to clarify the most prominent of misunderstandings associated with loyalty programs in retailing. The six myths can be classified in three groups: (1) architecture of shopper reward (size and convexity of rewards), (2) architecture of retailer rewards (sustainable profitability and horizontal competition), (3) type of retail sector (frequently versus infrequently purchased goods). We discuss each of these myths in turn. Size Of The Reward. Loyalty programs do not really work in grocery stores because the rewards that grocery retailers can afford to offer are too small. They cannot offer better rewards, according to conventional wisdom, because of their razor- thin margins fueled by extremely competitive market conditions. That doesn't stop many retailers from trying. Indeed, grocers like Tesco, Sainsbury's, Kroger, Safeway, and Stop & Shop give back 1- 2 percent of the total spent to their card- carrying shoppers. Stores in other categories—Staples in office supplies, Barnes and Noble in books, Best Buy in electronics—offer similar rewards. Boots, the UK- based pharmacy and beauty supply retailer, offers a substantial reward of 4 percent, but that rate is more exception than rule. This type of reward is actually a . As former Tesco CEO Sir Terry Leahy put it in his recent book referring to the 1 percent loyalty discount: ? Will consumers bestow their loyalty by spending most of their grocery dollars with one retailer for 1- 2 percent payback? Let's look more closely at the actual rewards. They come in two forms : (1) turbo charged vouchers (doubling, tripling, or even quintupling the value of the voucher at partner companies such as hotels, restaurants, and theme parks and (2) . The value of tailor- made coupons and their benefit to each individual shopper builds with the retailer's increasing understanding of the contents of the consumer's shopping basket, and relies heavily on the magnitude of dollars spent in the store. The actual value for the shopper of turbo- charged vouchers and tailor- made coupons are far more substantial than the 1 percent . The more a consumer spends in the store, the more information the store is collecting about consumer tastes and shopping habits, allowing it to direct more relevant rewards toward such loyal customers. ![]() Thus an increase in dollars spent in the store not only increases the dollar value of the coupons received by the customer, but also yields higher redemption rates reflecting the massively improved relevance of the tailor- made offers to each individual shopper based on loyalty card data. For example, at Tesco, redemption rates on individual tailor- made coupons vary between 1. ![]() It is therefore not the 1- 2 percent payback to the consumer that makes the loyalty program work for the grocer but rather the turbo- charged vouchers and the total value of tailored coupons that shoppers stand to lose if they go elsewhere. Store- switching costs created this way increase the spending and loyalty of shoppers. ![]() For retailers lacking the capability of using information about their card- holding customers and turning these data into tailor- made individual shopper- specific propositions, loyalty systems are no more than an expensive gadget. Convexity Of Rewards. It is necessary but not sufficient to offer substantial rewards to generate more loyalty from shoppers. If competing retailers copy these substantial rewards, shoppers will not be incentivized to stay loyal to only one retailer—promiscuous shoppers would not be worse off than extremely loyal shoppers if rewards were linear and uniform across retailers. In principal, rewards received by shoppers should be non- linear—spending $x at one retailer should offer the shopper a better reward than spending $x/n in different stores. One approach to achieve this convexity in rewards is to create loyalty systems that are tiered. It is often argued that tiered rewards, such as those offered by airlines, hotels, casinos, and financial service firms, are necessary for loyalty programs to thrive. Many companies in travel and service businesses reward frequent users by bestowing a status that allows them the privilege of high- value services. Take, for example, British Airways, which allows Executive Club members the privilege of access to airport lounges around the world. Services offered in the lounges—showers, spa, Internet connection, appetizing free food and drinks, along with the opportunity to rest during a layover—is exceptional value to members. There is even a higher class of lounge facilities for an even more frequent traveler in first class. Similar facilities, free upgrades, and better rooms are also offered by hotels. Casinos designate their guests as silver, gold, and platinum members, rewarding frequent visits with an increasing level of attention and free services available in each class of service. In designing a tiered system at Harrah's, CEO Gary Loveman was very clear that he wanted to ensure that customers who visited another casino would lose something by not accumulating rewards with Harrah's: the opportunity to get to higher levels of rewards and services that have a material impact on the customer's experience. Furthermore, tiered systems can stimulate customers to increase their purchases to reach the next stage- and therefore more and better rewards- in the hierarchy of loyalty classes. Even though many believe that loyalty programs that lack this feature won't induce enough loyalty to be sustainable, no retailer offers a tiered loyalty program. Conventional wisdom has it that it is difficult for retailers to offer differentiated services or levels of prestige to their different levels of customer loyalty. The belief that loyalty programs lacking explicit tiered reward structures are ineffective is a myth. We believe this to be a myth because successful application of loyalty systems by retailers goes beyond tiered rewards—they offer individually tailored rewards. Tiered reward systems create some form of stratified shopper segmentation—a shopper belongs to the silver category or the platinum category. These predetermined categories are far from homogeneous and substantial variation exists between consumers in the same category. So tailor- made loyalty systems go way beyond these heterogeneous customer groupings by offering propositions at an individual customer level (truly 1. Information technology has enabled retailers to do on a mass scale of millions of customers what shopkeepers did in their villages a century ago: offer a differentiated service to each shopper. Shopkeepers knew each one personally and treated them accordingly. If that customer went to another retailer who didn't know the shopper as well, he or she would receive an inferior service. Then as well as now, the more a shopper spends at a particular store, the better that retailer can offer specific value propositions that competitors can't match. Promiscuous shoppers will be disadvantaged by receiving the . The convexity in the reward structure comes from continuous improvement in making the rewards more relevant and meaningful to the shopper, which is more likely with ever increasing data available on the customer's loyalty card. Sustainable Profitability. ![]() As mentioned earlier, retailers are often thought of as being unable to afford substantive loyalty reward programs because of their low margins. Offering an unconvincing 1 percent loyalty reward to customers already represents a reduction of 3. When margins are low, the sustainability of loyalty rewards often depends on two possible sources: abundant excess capacity and exogenous subsidies. Airlines, casinos, and hotels can offer significant rewards to their loyal customers because they often operate with substantial overcapacity. Rewards based on this overcapacity, such as air miles or stays in hotels and resorts, are highly valued by potential customers. In regard to subsidies, retailers have two types of . The former finance most of the targeted coupons while the latter contribute the lion's share of the financing of turbo- charged vouchers. ![]() Interviu 02-12-2013 Sonia Monroy, a la conquista de Hollywood. 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