1. WAITING TIME MANAGEMENT
Chapter 15
WAITING TIME MANAGEMENT
McGraw-Hill/Irwin
© 2003 The McGraw-Hill Companies, Inc., All Rights Reserved.

2. LEARNING OBJECTIVES
Emphasize the importance of providing fast service as a
competitive advantage to companies.
Show the relationship between customer expectations,
customer perceptions, and customer satisfaction as they
pertain to waiting time.
Introduce the different factors that can affect customer
satisfaction with waiting time, and provide a framework for
showing managers which of these factors are under their control.
Demonstrate how service managers can design their operations to
provide faster service without incurring any additional costs.
Illustrate how technology can assist companies in providing faster
service to their customers.

3. Perceived Waiting Time
MANAGEMENT OF CUSTOMER WATING TIMES
Actual Waiting Time
Perceived Waiting Time

4. Exhibit 15.1 Cost Waiting Time Short Long Cost of Waiting
THE TRADE-OFF BETWEEN THE COST OF PROVIDING SERVICE AND THE COST OF HAVING CUSTOMERS WAIT
Cost
Waiting Time
Short
Long
Cost of Waiting
Cost of Service
Total Cost

5. Exhibit 15.2 Expectations SATISFACTION Performance Disconfirmation
THE ROLE OF SATISFACTION IN A CUSTOMER BEHAVIOR MODEL
Expectations
SATISFACTION
Performance
Disconfirmation
Intentions
Attitudes
Future Behavior
Source: Oliver, R.L. “A Cognitive Model of the Antecedents and Consequences of Satisfaction Decisions,” Journal of Marketing Research 17, November 1980.

6. THE ECONOMICS OF WAITING LINES
Two Types of Customers
Internal Customers
External Customers

7. COST OF WATING FOR EXTERNAL CUSTOMERS
Exhibit 15.3
COST OF WATING FOR EXTERNAL CUSTOMERS
+ $40.00
Financial Impact
+ $20.00
- $20.00
- $40.00
<1 min.
1-3 min.
>3 min.
Waiting Time

8. Uncomfortable versus Comfortable Unexplained versus Explained
Factors Affecting Customer Satisfaction with Waiting
Firm-Related Factors
Unfair versus Fair
Uncomfortable versus Comfortable
Unexplained versus Explained
Initial versus Subsequent

9. Customer-Related Factors Solo versus Group
Factors Affecting Customer Satisfaction with Waiting
Customer-Related Factors
Solo versus Group
More Valuable versus Less Valuable Services
Customer Value Systems
Customer’s Current Attitude

10. Elements of the Service Delivery System Design Process
NEW APPROACH TO SERVICE SYSTEM DESIGN
Elements of the Service Delivery System Design Process
Accurate Forecasting of Demand
Work Station Design
Reduced Setup Times
Cross-Training of Employees

11. Exhibit 15.4 WHY FASTER SERVICE IS STILL “OPTIMAL” W2 W1 S1 S2
Cost of Waiting
Cost
Cost of Service
Short
Long
Waiting Time

12. KEY TERMS Actual Waiting Time Back-of-the-House
Customer’s Expectations
Customer Satisfaction
Disconfirmation
External Customers
Front-of-the-House
Halo Effect
Internal Customers
Perceived Waiting Time