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IIMS Journal of Management Science
Year : 2020, Volume : 11, Issue : 2
First page : ( 82) Last page : ( 90)
Print ISSN : 0976-030X. Online ISSN : 0976-173X.
Article DOI : 10.5958/0976-173X.2020.00007.X

Does reduced waiting time always lead to improved customer satisfaction? An investigation

Rajangom Krishna Sabareesh

PhD student in the Department of Management Sciences, University of Waterloo, ON, N2L 3G1, Canada, He also works as a part-time professor in School of Business, Conestoga College, Canada, He can be reached at ksrajangom@uwaterloo.ca

Online published on 11 September, 2020.

Abstract

Queueing theory provides practical tips to Operation managers for improving business processes where customers encounter some sort of a waiting time before receiving their service. The present study deals with an empirical investigation of three different cash counter configurations on customer satisfaction in a Canadian retail dollar store. The study incorporates three configurations, which simulate queueing server systems of M/M/n type, and performs a randomized field study to estimate the impact of waiting time on the satisfaction of customers. The empirical study found that configuration which mimicked M/M/1 type system led to the least customer satisfaction; however, customers found configuration 3, which is a combination of a M/M/1 and M/M/2 systems, as more satisfying than configuration 2, which mimicked a M/M/3 type system. Empirical correlations have also been developed to understand the relationship between Customer Feedback and amount spent in shopping. A new parameter called as Self-Decision Quotient has been proposed, which can be used to provide explanation on customer behaviour. The investigation provides a counter intuitive relationship between waiting time in the queue and the satisfaction of customer. The study is conducted in a specific dollar store. For proposing the study outcomes as a guideline, it may be imperative to extend the study to multiple stores spread across the country. Even though queueing concepts have been used for more than eighty years to improve business processes, the following investigation underscore the need to have a holistic view of newer dimensions to make it contemporary.

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Keywords

Queue, Waiting time, Customer Satisfaction, Self-Decision Quotient.

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