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A Psychological Perspective on Service Segmentation Models: The Significance of Accounting for Consumers' Perceptions of Waiting and Service

Author

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  • Ziv Carmon

    (Marketing Group, Fuqua School of Business, Duke University, Durham, North Carolina 27706)

  • J. George Shanthikumar

    (Management Science Group, Walter A. Haas School of Business, University of California, Berkeley, California 94720)

  • Tali F. Carmon

    (Department of Industrial Engineering and Operations Research, University of California, Berkeley, California 94720)

Abstract

We examine how service should be divided and scheduled when it can be provided in multiple separate segments. We analyze variants of this problem using a model with a conventional function describing the waiting cost, that is modified to account for some aspects of the psychological cost of waiting in line. We show that consideration of the psychological cost can result in prescriptions that are inconsistent with the common wisdom of queuing theorists derived according to the conventional approach (e.g., equal load assignments). More generally, our intention in this paper is to illustrate that aspects of the psychological cost of waiting can be accounted for in the analysis of queuing systems, and that this may have significant implications for the service schemes that are derived.

Suggested Citation

  • Ziv Carmon & J. George Shanthikumar & Tali F. Carmon, 1995. "A Psychological Perspective on Service Segmentation Models: The Significance of Accounting for Consumers' Perceptions of Waiting and Service," Management Science, INFORMS, vol. 41(11), pages 1806-1815, November.
    • Handle: RePEc:inm:ormnsc:v:41:y:1995:i:11:p:1806-1815
    DOI: 10.1287/mnsc.41.11.1806
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