Waiting Lines Service Marketing

INVENTORY DEMAND THROUGH WAITING LINE AND RESERVATIONS

PRESENTED BY:SAMEER DHAWAN (1241)SAMPADA KAPPOR (1242)SANCHI VERMA (1243)SONIKA KAPOOR(1258)TRIPTI GUPTA (1264)TUSHAR MATANI (1267)UTTAM UPADHYAY (1269)

The business in which demand regularly exceeds the supply, managers can take steps to inventory demand.

The two ways to achieve this task are:-

By asking customers to wait in line.By offering them opportunity of reserving in advance.

WAITING IS A UNIVERSAL PHENOMENON

Nobody likes to be kept waiting.Its boring, time wasting and physically uncomfortable.Almost every organization faces the problem of waiting lines mainly in its operations.Example:•Waiting on phone•Waiting for the bills after a restaurant meals

WHY WAITING LINES OCCUR?

Also known as QUEUES. It occurs when the demand

exceeds supply. Queues are basically a symptom

of unresolved capacity management problem.

All the queues are not in the form of physical waiting line.

Some physical queues are geographically dispersed.

The problem of reducing customer waiting time requires a MULTIPRONGED STRATEGY

CHICAGO BANK

Customer satisfaction should be balanced against cost considerations. Technological improvements Human resource strategy Customer oriented improvements

QUEUE CONFIGURATION

SINGLE LINE/SINGLE SERVER /SINGLE STAGE

SINGLE LINE/SINGLE SERVER AT SEQUENTIAL STAGES

PARALLEL LINES TO MULTIPLE SERVERS DESIGNATED LINES TO DESIGNATED

SERVERS SINGLE LINE TO MULTIPLE SERVER SINGLE OR MULTIPLE SERVER

ALTERNATIVE QUEUING CONFIGURATIONS

Single line, single server, single stage

Single line, single servers, sequential stages

Parallel lines to multiple servers

Designated lines to designated servers

Single line to multiple servers (“snake”)

“Take a number” (single or multiple servers)28 29

21

20

24

23

30 25

3126

2732

VIRTUAL WAITS

When two or more people are waiting together it is possible for one to remain and the other to go off in order to do something else in a meanwhile.

“VIRTUAL QUEUE” strategy is the best way where customer register their place on a computer.

Example: Online reservation Doctor’s appointment

DISNEY THEME PARK

Well known theme park for the visitors.

Give full waiting information to its visitors about their ride to a particular attraction.

Guests are able to register their place in line with a computer and were then free to use the wait time visiting other places in the park.

Guests spent more money, more satisfied.

FASTPASS and Q-BOT

QUEUEING SYSTEM CAN BE TAILORED TO MARKET

SEGMENTS

Urgency of the job Duration of service

transaction Payment of premium price Importance of the customers

MINIMIZE PERCEPTION OF WAITING TIME

TWO WAYS TO MINIMIZE PERCEPTION OF WAITING TIME

Psychology Of Waiting Lines

Give Customer Information On Waits

10 PROPOSITIONS ON PSYCHOLOGY OF WAITING LINES

Unoccupied time feels longer than occupied time

Pre- and post-process waits feel longer than in-process waits

Anxiety makes waits seem longer

Uncertain waits are longer than known, finite waits

Unexplained waits are longer than explained waits

Unfair waits are longer than equitable waiting

People will wait longer for more valuable services

Waiting alone feels longer than waiting in groups

Physically uncomfortable waits feel longer Waits seem longer to new or occasional

users

CONTD…

GIVE CUSTOMERS INFORMATION ON WAITS

It helps them to make decisions as to whether they can afford to take the time to wait now or should come later.

It also enables to plan the use of their time while on waiting.

Example: Study conducted in Canada to find out how

students responded to waits while conducting transactions on a computer.

CREATE AN EFFECTIVE

RESERVATION SYSTEM

RESERVATION SYSTEM

Reservations intended to guarantee services when customer wants it.

Commonly used by many people processing services such as hotels, airlines, etc.

CHARACTERISTICS OF WELL DEFINED RESERVATION SYSTEM

Fast and user-friendly for customers and staff

Answers customer questions Offers options for self service

(e.g., the Web) Accommodates preferences

(e.g., room with view) Deflects demand from

unavailable first choices to alternative times and locations

Includes strategies for no-shows and overbooking Requiring deposits to discourage

no-shows Canceling unpaid bookings after

designated time Compensating victims of over-

booking

ADVANTAGES OF RESERVATIONS

Controls and smoothes demand

Pre-sells service Informs and educates

customers in advance of arrival

Saves customers from having to wait in line for service.

Data captured helps organizations Prepare financial projectionsPlan operations and staffing levels

RESERVATION STRATEGY SHOULD FOCUS ON YIELD

Focus on sector wise Load factor Occupancy rate

RESERVATION SYSTEM SHOULD FOCUS ON YIELD

Service firms are looking at their yield–that is the average revenue received per unit of capacity . The aim is to maximize this yield in order to improve profitability.

Setting Capacity Allocation Targets By Segment For A Hotel

Out of commission for renovation

Loyalty Program Members

Transient guestsWeekend package

Groups and conventions

Airline contracts

100%

50%

Week 7 (Low Season)

MNights: TuTime W Th F S Su

Loyalty Program Members

Transient guests

W/Epackage

Groups (no conventions)

Airline contracts

Week 36 (High Season)

M Tu W Th F S Su

Capacity (% rooms)

EFFECTIVE DEMAND AND CAPACITY MANAGEMENT REQUIRES

INFORMATION

Historical data on demand level and composition, noting responses to marketing variables

Demand forecasts by segment under specified conditions

Segment-by-segment data.

Fixed and variable cost data, profitability of incremental salesMeaningful location-by-location demand variationsCustomer attitudes toward queuingCustomer opinions of quality at different levels of capacity utilization

CONTD…

THANK YOU