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  • Essay / Services Marketing - 2303

    IntroductionIn an ideal situation, customers would not have to wait for products and services to be delivered. However, in the real world, organizations cannot always exactly match their capabilities and demand; therefore, waiting is often unavoidable when purchasing, especially in services marketing, because service businesses can barely inventory their "inventory" for later sale (Lovelock, 1992, p. 154 ). Typically, waiting in lines, called “queuing,” occurs when the number of customers arriving at an establishment exceeds the capacity of the system to serve them (Lovelock & Wirtz, 2011, p. 260 ). Basically, this essay will expose the relationship between queuing and customer satisfaction, as well as the relationship between customer satisfaction and business profitability; Discuss whether service organizations should seek to minimize queuing. Relationships Although researchers suggest that queuing is one way to help managers ration demand in businesses with insufficient capacity, customers do not like to wait to be served (Taylor, 1994). The main reason is that waiting in line takes time and most of the time brings a negative experience. For example, research (Pillay et al., 2011) showed that 82% of the total visit time patients spent in the clinic was waiting in public hospitals in Hong Kong. The benefits to patients were compromised by the delay in waiting time, as time is precious. Additionally, patients became anxious because they did not know how long they would have to wait. Worse still, the patient's health did not improve during the wait and the suffering was prolonged (Siciliani, Stanciole & Jacobs, 2009). Queuing experience can differ from industry to industry, individual to individual, and even situational...... middle of paper ...... 24(7), pp. 506-522 Siciliani, L., Stanciolec, A., Jacobs, R., (2009). Do Waiting Times Reduce Hospital Costs?, Journal of Health Economics, Vol. 28(4), pp. 771-780. Spinelli, MA & Canavos, GC, (2000). Investigate the relationship between employee satisfaction and customer satisfaction. Cornel Hotel and Restaurant Administration Quarterly, Vol. 41, pp. 29–33. Taylor, S., (1994), Waiting for service: the relationship between delays and service ratings. Journal of Marketing, Vol. 58(2), pp. 56-69. TOA Technologies, (2010). 2010 Cost of Waiting Survey. [Available at]: http://toatech.com/costofwaiting/documents/TOA-Cost-of-waiting-3countries.pdf [Accessed February 20, 2012] Veeraraghavan, S. & Debo, L., (2009), Joining longer queues: Information externalities in queue choice. Manufacturing and Service Operations Management, Vol. 11(4), p... 543–562.