Operations Research, Systems Engineering and Industrial Engineering Commons^™

A Psychological Perspective On Service Segmentation Models: The Significance Of Accounting For Consumers' Perceptions Of Waiting And Service, Ziv Carmon, J. George Shanthikumar, Tali F. Carmon

Industrial and Manufacturing Engineering

We examine how service should be divided and scheduled when it can be provided in multiple separate segments. We analyze variants of this problem using a model with a conventional function describing the waiting cost, that is modified to account for some aspects of the psychological cost of waiting in line. We show that consideration of the psychological cost can result in prescriptions that are inconsistent with the common wisdom of queuing theorists derived according to the conventional approach (e.g., equal load assignments). More generally, our intention in this paper is to illustrate that aspects of the psychological cost of …