EURASIAN JOURNAL OF BUSINESS MANAGEMENT

Customer Concentration versus Fragmentation and its implications on corportate risk

RESEARCH

Comm

1/1/2022 1 min read

This research explores on one side, the composition and structure of databases of clients in a total of 204 multi-sectorial companies based in Spain, Thailand and Indonesia. The criterion used to differentiate a customer ́s database structure relates to its degree of “fragmentation” versus “concentration”. Also, the research has determined a risk model using a statistical Monte Carlo simulation method in each company. Both, risk levels expressed as certainty to obtain levels of profits and type of customer ́s database structure have been analyzed under an Anova test and multiple correlation analysis exploring a total data of N=1020.