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Bundling and Scheduling Service Packages with Customer Behavior: Model and Heuristic
Authors:Michael J Dixon  Gary M Thompson
Abstract:Past researchers have found evidence that customers consider the sequence of event utility when evaluating past and future service experiences. Specifically, the evidence confirms that the placement of a peak event, the utility of the last event, and the slope of event utility over time all affect customer behavior and perception. We formulate an optimization problem with a focus on optimizing schedule sequence characteristics in order to maximize customer experiences. We discuss possible contexts in which this type of scheduling might be considered and, as an example, present a particularly complex model of a world‐renowned performing arts venue. We solve the problem with a simulated annealing algorithm and further discuss the complexity and opportunities associated with this type of scheduling effort.
Keywords:service scheduling  sequence effects  behavioral operations  service design  social pyschology
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