Using customer motivations to reduce peak demand: Does it work?

Kenneth J. Klassen, Thomas R. Rohleder

Research output: Contribution to journalArticle

2 Scopus citations

Abstract

This study considers whether consumers' motives to avoid waiting can be used to benefit both themselves and the services they attend. Specifically, two related aspects are explored: informing customers about alternative service delivery options that will allow them to avoid physically standing in line, and telling them at which times and days the service is usually busier (hoping they will avoid the more congested periods). The main issue is whether customers will alter their behaviour to avoid waiting - even in the absence of other incentives. Examples from four attempts to modify customer behaviour at two bank branches are analysed. Some of these attempts were quite successful in accomplishing their intended purpose and others were not. Results suggest that peak demand can be reduced and overall demand can be levelled using customer motivations, although the effectiveness of implementation depends on a number of factors. These factors include, among others, the type of clientele and the flexibility of the capacity.

Original languageEnglish (US)
Pages (from-to)53-69
Number of pages17
JournalService Industries Journal
Volume24
Issue number5
DOIs
StatePublished - Sep 1 2004

ASJC Scopus subject areas

  • Strategy and Management
  • Management of Technology and Innovation

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