Service SciencePub Date : 2024-03-22DOI: 10.1287/serv.2023.0033
Jian Liu, Yongpin Zhou, Jian Chen, Peng Li
{"title":"Reference Dependence in Queue Design and Pricing Strategies","authors":"Jian Liu, Yongpin Zhou, Jian Chen, Peng Li","doi":"10.1287/serv.2023.0033","DOIUrl":"https://doi.org/10.1287/serv.2023.0033","url":null,"abstract":"<p>This research investigates the effect of reference dependence on waiting times in service systems which formerly used a first-in-first-out (FIFO) service but have introduced a priority line with a fee. Our model combines reference-dependent gain-loss utility with standard customer utility, and we posit that customers are pleased with shorter-than-expected waiting times, whereas longer-than-expected times lead to dissatisfaction and an increased likelihood of balking. The study explores two scenarios: a captive customer system (CCS) and a noncaptive customer system (NCCS), with a focus on optimal pricing and segmentation strategies for revenue and social welfare maximization. The results reveal that, in a CCS, the service provider should implement observed and unobserved customer segmentation to optimize revenue and social welfare, respectively. In an NCCS, the impact of customer segmentation on revenue maximization depends on the value of regular customers, their loss reference-dependent preferences, and the system’s offered load. Alternatively, if the service provider seeks to maximize social welfare, the provider’s use of customer segmentation relies solely on the system’s offered load and customers’ reference-dependent preferences. Our findings also indicate that reference dependence can have varying impacts under different conditions, suggesting the effectiveness of tailored service and pricing strategies. Notably, a CCS generates more revenue than does an NCCS because of its captive nature, and, surprisingly, increasing the service rate can decrease revenue while improving social welfare. These insights have significant implications for service management strategies for a CCS and an NCCS.</p><p><b>Funding:</b> J. Liu was supported by the National Natural Science Foundation of China (General Program) [Grant 72071112]. J. Chen was supported by the National Natural Science Foundation of China (Major Program) [Grant 71490723].</p><p><b>Supplemental Material:</b> The online appendix is available at https://doi.org/10.1287/serv.2023.0033.</p>","PeriodicalId":46249,"journal":{"name":"Service Science","volume":null,"pages":null},"PeriodicalIF":2.3,"publicationDate":"2024-03-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140200883","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Service SciencePub Date : 2024-03-12DOI: 10.1287/serv.2021.0052
F. S. Zijlstra, A. A. Alblas, F. Langerak
{"title":"Cross-Site and Cross-Generation Knowledge Transfer in High-Tech After-Sales Service","authors":"F. S. Zijlstra, A. A. Alblas, F. Langerak","doi":"10.1287/serv.2021.0052","DOIUrl":"https://doi.org/10.1287/serv.2021.0052","url":null,"abstract":"Service Science, Ahead of Print. <br/>","PeriodicalId":46249,"journal":{"name":"Service Science","volume":null,"pages":null},"PeriodicalIF":2.3,"publicationDate":"2024-03-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140117380","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Service SciencePub Date : 2024-02-29DOI: 10.1287/serv.2023.0018
Axun Xing, Haiyan Wang, Bei Bian, Xinxin Guo
{"title":"Contract Theory-Based Collection, Updating, and Packaging Combination Strategies in Data Trading","authors":"Axun Xing, Haiyan Wang, Bei Bian, Xinxin Guo","doi":"10.1287/serv.2023.0018","DOIUrl":"https://doi.org/10.1287/serv.2023.0018","url":null,"abstract":"Service Science, Ahead of Print. <br/>","PeriodicalId":46249,"journal":{"name":"Service Science","volume":null,"pages":null},"PeriodicalIF":2.3,"publicationDate":"2024-02-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140008684","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Service SciencePub Date : 2024-02-12DOI: 10.1287/serv.2023.0009
J. Driessen, Joachim Arts, G. van Houtum
{"title":"On the Importance of Service Parts When Taking Commonality and Reliability Decisions","authors":"J. Driessen, Joachim Arts, G. van Houtum","doi":"10.1287/serv.2023.0009","DOIUrl":"https://doi.org/10.1287/serv.2023.0009","url":null,"abstract":"Competitive Original Equipment Manufacturers (OEMs) do not only sell equipment, but also provide service contracts that ensure proper functioning and uptime of equipment after the sale. This makes OEMs responsible for a large part of an equipment’s life cycle. Therefore, OEMs aim to minimize the total life cycle costs of their equipment, in particular by commonality and reliability level decisions during the design phase. We consider these decisions for one component occurring in a family of systems. The commonality decision is about choosing a common component or dedicated components for the systems. The life cycle costs consist of design and production costs of all components, repair costs, inventory holding costs of service parts, and logistic downtime costs (i.e., downtime costs due to insufficient spare parts inventory). At many OEMs, the design department tends to exclude service parts considerations for the commonality and reliability level decisions. Excluding service parts leads to a simpler decision model, however, this may lead to non–optimal decisions. We compare two approaches for the commonality and reliability decisions: the anticipating approach, which includes inventory holding costs of service parts and logistic downtime costs, and the nonanticipating approach, which excludes these costs. Since the cost function under the anticipating approach is intractable, we first derive a cost function that approximates the actual costs via an asymptotic analysis. Next, we show that the anticipating approach selects the common component more frequently in comparison with the nonanticipating approach. For many problem instances, the nonanticipating approach leads to decisions that have a much higher overall cost than using the anticipating approach. The relative cost difference can become arbitrarily large when the family of systems consists of many systems. Funding: J. Driessen was funded by the Netherlands Organisation for Scientific Research [Grant 407-12-001].","PeriodicalId":46249,"journal":{"name":"Service Science","volume":null,"pages":null},"PeriodicalIF":2.3,"publicationDate":"2024-02-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139843766","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Service SciencePub Date : 2024-02-12DOI: 10.1287/serv.2023.0009
J. Driessen, Joachim Arts, G. van Houtum
{"title":"On the Importance of Service Parts When Taking Commonality and Reliability Decisions","authors":"J. Driessen, Joachim Arts, G. van Houtum","doi":"10.1287/serv.2023.0009","DOIUrl":"https://doi.org/10.1287/serv.2023.0009","url":null,"abstract":"Competitive Original Equipment Manufacturers (OEMs) do not only sell equipment, but also provide service contracts that ensure proper functioning and uptime of equipment after the sale. This makes OEMs responsible for a large part of an equipment’s life cycle. Therefore, OEMs aim to minimize the total life cycle costs of their equipment, in particular by commonality and reliability level decisions during the design phase. We consider these decisions for one component occurring in a family of systems. The commonality decision is about choosing a common component or dedicated components for the systems. The life cycle costs consist of design and production costs of all components, repair costs, inventory holding costs of service parts, and logistic downtime costs (i.e., downtime costs due to insufficient spare parts inventory). At many OEMs, the design department tends to exclude service parts considerations for the commonality and reliability level decisions. Excluding service parts leads to a simpler decision model, however, this may lead to non–optimal decisions. We compare two approaches for the commonality and reliability decisions: the anticipating approach, which includes inventory holding costs of service parts and logistic downtime costs, and the nonanticipating approach, which excludes these costs. Since the cost function under the anticipating approach is intractable, we first derive a cost function that approximates the actual costs via an asymptotic analysis. Next, we show that the anticipating approach selects the common component more frequently in comparison with the nonanticipating approach. For many problem instances, the nonanticipating approach leads to decisions that have a much higher overall cost than using the anticipating approach. The relative cost difference can become arbitrarily large when the family of systems consists of many systems. Funding: J. Driessen was funded by the Netherlands Organisation for Scientific Research [Grant 407-12-001].","PeriodicalId":46249,"journal":{"name":"Service Science","volume":null,"pages":null},"PeriodicalIF":2.3,"publicationDate":"2024-02-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139783948","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Service SciencePub Date : 2024-02-09DOI: 10.1287/serv.2023.0005
Nils Boysen, Dirk Briskorn, Johannes Rupp, Stefan Schwerdfeger
{"title":"Jam in the Tunnel: On Urban Freight Tunnels, Their Operational Scheduling, and Unused Transport Capacity","authors":"Nils Boysen, Dirk Briskorn, Johannes Rupp, Stefan Schwerdfeger","doi":"10.1287/serv.2023.0005","DOIUrl":"https://doi.org/10.1287/serv.2023.0005","url":null,"abstract":"Service Science, Ahead of Print. <br/>","PeriodicalId":46249,"journal":{"name":"Service Science","volume":null,"pages":null},"PeriodicalIF":2.3,"publicationDate":"2024-02-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139771851","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Service SciencePub Date : 2024-02-06DOI: 10.1287/serv.2023.0044
Seung Min Shin, Kyunghwa Chung, Changhee Kim
{"title":"The Effects of Homegrown Rule on Efficiency of Sports Teams: Evidence from the English Premier League","authors":"Seung Min Shin, Kyunghwa Chung, Changhee Kim","doi":"10.1287/serv.2023.0044","DOIUrl":"https://doi.org/10.1287/serv.2023.0044","url":null,"abstract":"Service Science, Ahead of Print. <br/>","PeriodicalId":46249,"journal":{"name":"Service Science","volume":null,"pages":null},"PeriodicalIF":2.3,"publicationDate":"2024-02-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139772030","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}