Residential College | false |
Status | 已發表Published |
When should service firms provide free experience service? | |
Wenhui Zhou1; Zhaotong Lian2; Jinbiao Wu2,3 | |
2014-05-01 | |
Source Publication | European Journal of Operational Research |
ABS Journal Level | 4 |
ISSN | 0377-2217 |
Volume | 234Issue:3Pages:830-838 |
Abstract | By providing a free experience service, a service firm can attract more uninformed customers. However, it could reversely effect the delay-sensitive, informed customers' decision. In this paper, we study a priority queueing system with free experience services. We study the customer behavior in equilibrium after we derive the expected customer waiting time. We then construct the service firm's revenue function and obtain an optimal strategy for the service firm. Our results suggest that when the market size of informed customers is relatively small, the firm should consider providing free experience services for uninformed customers. Conversely, if the demand rate of potential informed customers is quite high, the firm should ignore uninformed customers. © 2013 Elsevier B.V. All rights reserved. |
Keyword | Delay-sensitive Experience Service Or In Service Industries Queueing Revenue Management |
DOI | 10.1016/j.ejor.2013.10.036 |
URL | View the original |
Indexed By | SCIE ; SSCI |
WOS Research Area | Business & Economics ; Operations Research & Management Science |
WOS Subject | Management ; Operations Research & Management Science |
WOS ID | WOS:000331419800025 |
Publisher | ELSEVIER SCIENCE BV, PO BOX 211, 1000 AE AMSTERDAM, NETHERLANDS |
Scopus ID | 2-s2.0-84892796725 |
Fulltext Access | |
Citation statistics | |
Document Type | Journal article |
Collection | DEPARTMENT OF ACCOUNTING AND INFORMATION MANAGEMENT University of Macau |
Corresponding Author | Zhaotong Lian |
Affiliation | 1.School of Business Administration,South China University of Technology,,China 2.Faculty of Business Administration,University of Macau,,Macao 3.School of Mathematics and Statistics,Central South University,,China |
Corresponding Author Affilication | Faculty of Business Administration |
Recommended Citation GB/T 7714 | Wenhui Zhou,Zhaotong Lian,Jinbiao Wu. When should service firms provide free experience service?[J]. European Journal of Operational Research, 2014, 234(3), 830-838. |
APA | Wenhui Zhou., Zhaotong Lian., & Jinbiao Wu (2014). When should service firms provide free experience service?. European Journal of Operational Research, 234(3), 830-838. |
MLA | Wenhui Zhou,et al."When should service firms provide free experience service?".European Journal of Operational Research 234.3(2014):830-838. |
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