Reference no: EM133769673

Question

In an article published by Informs, Kumar (2020) indicates that the cost of waiting lines is not necessarily the cost of the value of time wasted on waiting but how much less someone will buy for every second of waiting. The measurement of economic costs of waiting lines is not simple, as there are many factors that contribute to the cost. These factors include opportunity costs, customer dissatisfaction, resource allocation, increased costs, and loss of sales and revenue. However, these factors can be changed to reduce waiting lines times or appeal to customer satisfaction. Reduction would include having the necessary number of employees or having more experienced employees and/or using technology. Whereas, appealing to customer satisfaction would include line activities or, like waiting rooms, having entertainment such as magazines or televisions. As an example, my oldest has braces, and every six weeks we have to visit the orthodontist. In the waiting room, they have electronic table games. Since a majority of their clients are teenagers this is a good appeal to keep them entertained. It important to address economic costs because it will enhance customer experiences, optimize resource utilization, influence profitability, and increase positive brand reputation.