Ch 12 Flashcards
(39 cards)
Economic waiting costs are viewed from two perspectives
1) The Firm’s perspective
2) The External Customer’s perspective
Where an idled employee (internal customer) is measured by unproductive wages this is viewed on which perspective of economic waiting
The Firm’s perspective
This perspective of economic waiting is where:
- they could have spent their time doing something else
-they became bored
-waiting/wasting time drives up anxiety
- they experience other psychological distress
2) The External Customer’s perspective
T/F- In a competitive market it’s important to
understand the cause and effect of waiting
True
What are lost sales a result of?
Excessive waiting
Expectation of long waits
How can lost sales be avoided
By concealing your question(waiting line) to avoid lost sales
How do you conceal you ques>
- Diverting people to bar (restaurant)
- Pay for ticket outside of park vs at the gate
-“Snake” waiting lines
T/F- The customer is a co-producer in service operations
True
How else can firms occupy the customer’s waiting time?
-Entering your own medical history directly using a tablet
-Self-serve salad bar
-Enertain
When service firms “inventories” customers to increase their service process efficiently this is the same process used for *** inventory in manufacturing
Work in process/progress
Higher utilization of facilities is purchased at the price of customer waiting
True
Example: Think of public services (low cost) like the
USPS or the Department of Driver Services…LONG
LINES OR Rooms FILLED with people waiting
* Less employees/low capacity to serve=lower cost
which results in a longer customer wait!
Look at chart on slide 13
A line of waiting customers who require service
from one or more servers is defined as
Queue
What are non physical examples of a queue
- On hold via phone
- Waiting to “chat” with an online customer service rep
What are non stereotypical types of queuing systems?
-Servers do not have to be limited to serving one
customer at a time, i.e. buses, airplanes, elevators (think
“batch”)
− Consumer need not always travel to the service facility,
i.e. “911” fire and police protection
− Service may consist of stages of queues in a series or of a
more complex network of queues, i.e. Universal Studios
What law was developed by David Master in 1985 in an article title, “The Psychology of Waiting Lines”. He is also a former Harvard business school professor, writer, and expert on the management of professional service firms
Maister’s Laws of Service
Maisters Law of Service has to different laws. Which law states S=P-E.
S stands for Satisfaction
P stands for Perception
E stands for Expectation
and state both perception and expectation are psychological phenomena
Maisters First Law of Service
Maisters Law of Service has to different laws. Which law is coined as “It’s hard to plan catch-up ball”
Maister’s Second Law of Service
Based on the following guidelines which of Miaster’s Law am I referring to
-There is a halo-effect created by the
early stages of any service
encounter
- Largest payback will be realized by
improving the perceived quality of
service
Maister’s Second Law of Service
What are the psychological considerations managers must consider when developing tools to improve
perception include:
-“Occupied time feels shorter than unoccupied
time”
- “People want to get started”
- “Anxiety makes the waits seem longer”
= Erma Bombeck’s Law – “The other line
always moves faster”
-“Uncertain waits are longer than known, finite
waits”
-“Unexplained waits are longer than explained
waits”- FIFO
-“The more valuable the service, the longer the
customer will wait”
-“Solo waits feel longer than group waits”
What are the 5 strategies of managing customer waiting
1)Consider the psychological impact of waiting for a
service
- The psychology of waiting
2)Service organization must fill empty or unoccupied time
in a positive way
- That old empty feeling
3)Give customers the feeling that they are not, in fact,
waiting
- A foot in the door
4)Relieve the customer’s anxiety about how long the
wait will be
- The light at the end of the tunnel
5) Establish fairness in the delivery process
- excuse me but I was next
What causes the management of queues to be a continuing challenge?
- Customers arrive at random
− Customers place IMMEDIATE demands on
available service at time of arrival
− Waits are experienced if service capacity if fully
utilized at time of arrival
− Mismatch between varying arrival rates and
service time requirements result in queue
formation
What are the 5 features of queueing systems?
1) Calling population
2) Arrival Process
3) Queue Configuration
4) Queue Discipline
5) Service process
Where service obtain customers from are defined as
Calling Population
