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Think you know how long you'll wait? Research says think again.
Confirmed
In Short: New University of Florida research shows customers often misjudge how much service times can vary, impacting business pricing and communication strategies.
New research from the University of Florida Warrington College of Business reveals that customers frequently underestimate the variability in service times, a behavioral bias with significant implications for both businesses and consumers.
According to the study, when customers are waiting but cannot see the length of the line, businesses can charge higher prices than traditional models predict.
Conversely, if businesses share wait times during peak or off-peak hours, they can enhance revenue.
Anand Paul, PhD, E.R., explains, 'In these cases, companies may need to be more strategic about when they share wait time queue-length information.
The research, titled 'Managing Service Systems with Overconfident Customers,' is published in Manufacturing & Service Operations Management.
The study highlights that most people believe they have a good grasp of how long a service will take, affecting how businesses price services and communicate wait times.
What's confirmed
- New research from the University of Florida Warrington College of Business reveals that customers frequently underestimate the variability in service times, a behavioral bias with significant implications for both businesses and consumers.
- According to the study, when customers are waiting but cannot see the length of the line, businesses can charge higher prices than traditional models predict.
- Conversely, if businesses share wait times during peak or off-peak hours, they can enhance revenue.
- Anand Paul, PhD, E.R., explains, 'In these cases, companies may need to be more strategic about when they share wait time queue-length information.
- The research, titled 'Managing Service Systems with Overconfident Customers,' is published in Manufacturing & Service Operations Management.
- The study highlights that most people believe they have a good grasp of how long a service will take, affecting how businesses price services and communicate wait times.
What's still developing
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