Residential Collegefalse
Status已發表Published
A re-examination of experience service offering and regular service pricing under profit maximization
Zhaotong Lian1; Xinhua Gu1; Jinbiao Wu2
2016-11-01
Source PublicationEuropean Journal of Operational Research
ABS Journal Level4
ISSN0377-2217
Volume254Issue:3Pages:907-915
Abstract

A firm may offer an experience service free of charge to attract more customers to buy its regular service. This paper provides an economic analysis for interactions between the capacity-constrained firm and its waiting-averse customers, generating certain managerial insights. Free services should be sped up to move customers onto the paid service if it is idle, or slowed down to hold onto customers and avoid exacerbating congestion in the paid service if it is busy. A lower price should be charged for the regular service as compensation to customers for service delay if more of them buy that service. When more customers arrive for experience services, a greater price reduction should be offered to attract them into the regular service if it becomes more congested.

KeywordCustomer Experience Economic Intuitions Managerial Insights Pricing Queueing
DOI10.1016/j.ejor.2016.05.023
URLView the original
Indexed BySCIE ; SSCI
Language英語English
WOS Research AreaBusiness & Economics ; Operations Research & Management Science
WOS SubjectManagement ; Operations Research & Management Science
WOS IDWOS:000378663000017
PublisherELSEVIER, RADARWEG 29, 1043 NX AMSTERDAM, NETHERLANDS
Scopus ID2-s2.0-84969981510
Fulltext Access
Citation statistics
Document TypeJournal article
CollectionDEPARTMENT OF ACCOUNTING AND INFORMATION MANAGEMENT
University of Macau
DEPARTMENT OF FINANCE AND BUSINESS ECONOMICS
Corresponding AuthorJinbiao Wu
Affiliation1.Faculty of Business Administration, University of Macau, Macau SAR, China
2.School of Mathematics and Statistics, Central South University, Changsha 410075, Human, China
First Author AffilicationFaculty of Business Administration
Recommended Citation
GB/T 7714
Zhaotong Lian,Xinhua Gu,Jinbiao Wu. A re-examination of experience service offering and regular service pricing under profit maximization[J]. European Journal of Operational Research, 2016, 254(3), 907-915.
APA Zhaotong Lian., Xinhua Gu., & Jinbiao Wu (2016). A re-examination of experience service offering and regular service pricing under profit maximization. European Journal of Operational Research, 254(3), 907-915.
MLA Zhaotong Lian,et al."A re-examination of experience service offering and regular service pricing under profit maximization".European Journal of Operational Research 254.3(2016):907-915.
Files in This Item:
There are no files associated with this item.
Related Services
Recommend this item
Bookmark
Usage statistics
Export to Endnote
Google Scholar
Similar articles in Google Scholar
[Zhaotong Lian]'s Articles
[Xinhua Gu]'s Articles
[Jinbiao Wu]'s Articles
Baidu academic
Similar articles in Baidu academic
[Zhaotong Lian]'s Articles
[Xinhua Gu]'s Articles
[Jinbiao Wu]'s Articles
Bing Scholar
Similar articles in Bing Scholar
[Zhaotong Lian]'s Articles
[Xinhua Gu]'s Articles
[Jinbiao Wu]'s Articles
Terms of Use
No data!
Social Bookmark/Share
All comments (0)
No comment.
 

Items in the repository are protected by copyright, with all rights reserved, unless otherwise indicated.