Reducing the Wait in Waiting-Line Systems: Waiting Line Segmentation
18 Pages Posted: 20 Jun 2006 Last revised: 18 Apr 2018
Date Written: July 1, 1997
Abstract
The problem of long wait in queue in apparent wherever there is a waiting-line system, but the cost of waiting is not the same for all customers. The authors propose a new model of waiting, called Waiting Line Segmentation. Waiting lines are segmented into customers who are willing to pay a premium for faster service and those who are not. Analytic results show that this approach results in increased customer satisfaction for both segments, increased profits, and increased efficiency.
Keywords: waiting line
JEL Classification: C00
Suggested Citation: Suggested Citation
Friedman, Hershey H. and Friedman, Linda Weiser, Reducing the Wait in Waiting-Line Systems: Waiting Line Segmentation (July 1, 1997). Business Horizons, Vol. 40, pp. 54-58, July 1997, Available at SSRN: https://ssrn.com/abstract=909000
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