IDEAS home Printed from https://ideas.repec.org/a/inm/ormnsc/v68y2022i8p5745-5757.html
   My bibliography  Save this article

Delay Information in Virtual Queues: A Large-Scale Field Experiment on a Major Ride-Sharing Platform

Author

Listed:
  • Qiuping Yu

    (Scheller College of Business, Georgia Institute of Technology, Atlanta, Georgia 30308; McDonough School of Business, Georgetown University, Washington, DC 20057)

  • Yiming Zhang

    (School of Management and Economics, The Chinese University of Hong Kong, Shenzhen, Guangdong 518172, China; Shenzhen Finance Institute, Shenzhen, Guangdong 518000, China)

  • Yong-Pin Zhou

    (Foster School of Business, University of Washington, Seattle, Washington 98195)

Abstract

The growing adoption of virtual queues in the service and retail industries has been greatly accelerated in recent times. In collaboration with a major ride-sharing platform, we study how the wait time information (WTI), both its initial magnitude and its subsequent progress over time, impacts customers’ abandonment behavior in virtual queues. The study was conducted through a randomized field experiment that included 1,425,745 rides: one-third of the rides received a neutral WTI, one-third received an optimistic WTI shorter than the neutral WTI (hence less frequent updates), and one-third received a pessimistic WTI (hence more frequent updates). The underlying wait time did not vary across the three groups. We find that both the magnitude of the initial WTI and the update frequency of the WTI have a significant impact on customer abandonment. Specifically, when adjusting the initial WTI by one minute, it did not impact customer abandonment. This is because the magnitude effect of the initial WTI is cancelled out by the opposite update-frequency effect. However, when adjusting the WTI by more than one minute, the magnitude effect dominates: when comparing the pessimistic WTI of four minutes with the neutral initial WTI of two minutes, five minutes with three minutes, and eight minutes with five minutes, customers’ likelihood to abandon increases by 6.2%, 14.1%, and 19.6%, respectively. Similar but opposite effects are found when comparing the optimistic WTI with the neutral WTI. We discuss how firms can use our findings and insights to design and operate better virtual queues.

Suggested Citation

  • Qiuping Yu & Yiming Zhang & Yong-Pin Zhou, 2022. "Delay Information in Virtual Queues: A Large-Scale Field Experiment on a Major Ride-Sharing Platform," Management Science, INFORMS, vol. 68(8), pages 5745-5757, August.
    • Handle: RePEc:inm:ormnsc:v:68:y:2022:i:8:p:5745-5757
    DOI: 10.1287/mnsc.2022.4448
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/mnsc.2022.4448
    Download Restriction: no
    File URL: https://libkey.io/10.1287/mnsc.2022.4448?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Gad Allon & Achal Bassamboo & Itai Gurvich, 2011. "“We Will Be Right with You”: Managing Customer Expectations with Vague Promises and Cheap Talk," Operations Research, INFORMS, vol. 59(6), pages 1382-1394, December.
    2. Hassin, Refael, 1986. "Consumer Information in Markets with Random Product Quality: The Case of Queues and Balking," Econometrica, Econometric Society, vol. 54(5), pages 1185-1195, September.
    3. Ming Hu & Yang Li & Jianfu Wang, 2018. "Efficient Ignorance: Information Heterogeneity in a Queue," Management Science, INFORMS, vol. 64(6), pages 2650-2671, June.
    4. Jing Dong & Elad Yom-Tov & Galit B. Yom-Tov, 2019. "The Impact of Delay Announcements on Hospital Network Coordination and Waiting Times," Management Science, INFORMS, vol. 67(5), pages 1969-1994, May.
    5. Dilip Soman & Mengze Shi, 2003. "Virtual Progress: The Effect of Path Characteristics on Perceptions of Progress and Choice," Management Science, INFORMS, vol. 49(9), pages 1229-1250, September.
    6. Daniel Kahneman & Amos Tversky, 2013. "Prospect Theory: An Analysis of Decision Under Risk," World Scientific Book Chapters, in: Leonard C MacLean & William T Ziemba (ed.), HANDBOOK OF THE FUNDAMENTALS OF FINANCIAL DECISION MAKING Part I, chapter 6, pages 99-127, World Scientific Publishing Co. Pte. Ltd..
    7. Piyush Kumar & Manohar U. Kalwani & Maqbool Dada, 1997. "The Impact of Waiting Time Guarantees on Customers' Waiting Experiences," Marketing Science, INFORMS, vol. 16(4), pages 295-314.
    8. Gad Allon & Achal Bassamboo, 2011. "The Impact of Delaying the Delay Announcements," Operations Research, INFORMS, vol. 59(5), pages 1198-1210, October.
    9. Pengfei Guo & Paul Zipkin, 2007. "Analysis and Comparison of Queues with Different Levels of Delay Information," Management Science, INFORMS, vol. 53(6), pages 962-970, June.
    10. Qiuping Yu & Gad Allon & Achal Bassamboo & Seyed Iravani, 2018. "Managing Customer Expectations and Priorities in Service Systems," Management Science, INFORMS, vol. 64(8), pages 3942-3970, August.
    11. Rouba Ibrahim, 2018. "Sharing delay information in service systems: a literature survey," Queueing Systems: Theory and Applications, Springer, vol. 89(1), pages 49-79, June.
    12. Imbens,Guido W. & Rubin,Donald B., 2015. "Causal Inference for Statistics, Social, and Biomedical Sciences," Cambridge Books, Cambridge University Press, number 9780521885881, September.
    13. Mor Armony & Nahum Shimkin & Ward Whitt, 2009. "The Impact of Delay Announcements in Many-Server Queues with Abandonment," Operations Research, INFORMS, vol. 57(1), pages 66-81, February.
    14. Ryan W. Buell & Michael I. Norton, 2011. "The Labor Illusion: How Operational Transparency Increases Perceived Value," Management Science, INFORMS, vol. 57(9), pages 1564-1579, February.
    15. Robert J. Batt & Christian Terwiesch, 2015. "Waiting Patiently: An Empirical Study of Queue Abandonment in an Emergency Department," Management Science, INFORMS, vol. 61(1), pages 39-59, January.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Qiuping Yu & Gad Allon & Achal Bassamboo, 2021. "The Reference Effect of Delay Announcements: A Field Experiment," Management Science, INFORMS, vol. 67(12), pages 7417-7437, December.
    2. Dimitrios Logothetis & Antonis Economou, 2023. "The impact of information on transportation systems with strategic customers," Production and Operations Management, Production and Operations Management Society, vol. 32(7), pages 2189-2206, July.
    3. Pengfei Guo & Moshe Haviv & Zhenwei Luo & Yulan Wang, 2022. "Optimal queue length information disclosure when service quality is uncertain," Production and Operations Management, Production and Operations Management Society, vol. 31(5), pages 1912-1927, May.
    4. Qiuping Yu & Gad Allon & Achal Bassamboo, 2017. "How Do Delay Announcements Shape Customer Behavior? An Empirical Study," Management Science, INFORMS, vol. 63(1), pages 1-20, January.
    5. Siddharth Prakash Singh & Mohammad Delasay & Alan Scheller‐Wolf, 2023. "Real‐time delay announcement under competition," Production and Operations Management, Production and Operations Management Society, vol. 32(3), pages 863-881, March.
    6. Rouba Ibrahim, 2018. "Sharing delay information in service systems: a literature survey," Queueing Systems: Theory and Applications, Springer, vol. 89(1), pages 49-79, June.
    7. Ryan W. Buell, 2017. "Last Place Aversion in Queues," Harvard Business School Working Papers 18-053, Harvard Business School, revised Oct 2019.
    8. Tesnim Naceur & Yezekael Hayel, 2020. "Deterministic state-based information disclosure policies and social welfare maximization in strategic queueing systems," Queueing Systems: Theory and Applications, Springer, vol. 96(3), pages 303-328, December.
    9. Gad Allon & Achal Bassamboo, 2011. "The Impact of Delaying the Delay Announcements," Operations Research, INFORMS, vol. 59(5), pages 1198-1210, October.
    10. Kaan Kuzu & Long Gao & Susan H. Xu, 2019. "To Wait or Not to Wait: The Theory and Practice of Ticket Queues," Manufacturing & Service Operations Management, INFORMS, vol. 21(4), pages 853-874, October.
    11. Philipp Afèche & Opher Baron & Yoav Kerner, 2013. "Pricing Time-Sensitive Services Based on Realized Performance," Manufacturing & Service Operations Management, INFORMS, vol. 15(3), pages 492-506, July.
    12. Qiuping Yu & Gad Allon & Achal Bassamboo & Seyed Iravani, 2018. "Managing Customer Expectations and Priorities in Service Systems," Management Science, INFORMS, vol. 64(8), pages 3942-3970, August.
    13. Nur Sunar & Yichen Tu & Serhan Ziya, 2021. "Pooled vs. Dedicated Queues when Customers Are Delay-Sensitive," Management Science, INFORMS, vol. 67(6), pages 3785-3802, June.
    14. Ruijie Zhang & Xiaohua Han & Rowan Wang & Jianghua Zhang & Yinghao Zhang, 2023. "Please don't make me wait! Influence of customers' waiting preference and no‐show behavior on appointment systems," Production and Operations Management, Production and Operations Management Society, vol. 32(6), pages 1597-1616, June.
    15. Harish Guda & Milind Dawande & Ganesh Janakiraman, 2023. "The economics of process transparency," Production and Operations Management, Production and Operations Management Society, vol. 32(6), pages 1812-1829, June.
    16. Brett A. Hathaway & Seyed M. Emadi & Vinayak Deshpande, 2021. "Don’t Call Us, We’ll Call You: An Empirical Study of Caller Behavior Under a Callback Option," Management Science, INFORMS, vol. 67(3), pages 1508-1526, March.
    17. Yuan, Xuchuan & Brian Hwarng, H., 2023. "Examining the dynamics of reactive capacity allocation through a chaos lens," European Journal of Operational Research, Elsevier, vol. 308(2), pages 912-928.
    18. Achal Bassamboo & Rouba Ibrahim, 2021. "A General Framework to Compare Announcement Accuracy: Static vs. LES-Based Announcement," Management Science, INFORMS, vol. 67(7), pages 4191-4208, July.
    19. Legros, Benjamin, 2021. "Routing analyses for call centers with human and automated services," International Journal of Production Economics, Elsevier, vol. 240(C).
    20. Erjie Ang & Sara Kwasnick & Mohsen Bayati & Erica L. Plambeck & Michael Aratow, 2016. "Accurate Emergency Department Wait Time Prediction," Manufacturing & Service Operations Management, INFORMS, vol. 18(1), pages 141-156, February.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inm:ormnsc:v:68:y:2022:i:8:p:5745-5757. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.