Title :
Service Delivery Lead Time Model Based on Customer Demand Characteristics
Author :
Liulei ; Luohua ; Xiao-wo, Tang
Author_Institution :
Southwest Jiaotong Univ., Chengdu
Abstract :
Many service facilities are adopting the strategy of advertising a uniform delivery lead time to attract customers in Time Based Competition. Different kinds of customers have different sensitivities to price and time. How many money are prepared to pay for the service is also different to the customers with the same time or price sensitivity. In this typical guaranteed delivery time strategy, customer demand characteristics based on time sensitivity and reservation payment determine the relationship between demand and delivery lead time. Considering customer consume behavior facing price and lead time, a service delivery lead time model is presented. Based on the model, the impact of price and customer time sensitivity as well as differentiation in customer reservation payment on delivery time decision is analyzed. Finally, a numerical example is given to illustrate the model and gain some useful managerial insights
Keywords :
consumer behaviour; customer services; lead time reduction; order processing; service industries; consumer behavior; customer demand characteristics; customer reservation payment; delivery time decision; price sensitivity; service delivery lead time model; service industry; time based competition; time sensitivity; Advertising; Costs; Environmental economics; Lead time reduction; Production planning; Pulp manufacturing; Technology management; Customer demand characteristics; Delivery time strategy; Lead time guarantee; Service industry;
Conference_Titel :
Service Operations and Logistics, and Informatics, 2006. SOLI '06. IEEE International Conference on
Conference_Location :
Shanghai
Print_ISBN :
1-4244-0317-0
Electronic_ISBN :
1-4244-0318-9
DOI :
10.1109/SOLI.2006.329017
