You are on page 1of 9

A FRAMEWORK FOR RELATING

WAITING TIME AND CUSTOMER


SATISFACTION IN A SERVICE
OPERATION
Mark M. Davis

Thomas E. Vollmann
The customer's direct interaction with a A pure operations management viewpoint
service-producing process suggests that would focus on the tradeoff between customer
marketing concepts, such as customer waiting time and the number of workers to
satisfaction, should be incorporated into the schedule. A marketing focus, on the other
operational decision-making process. Such an hand, would address customer satisfaction
interfunctional approach might result in more directly, based upon customer opinions
improved solutions to managerial problems about the service. This article develops a
that were previously afforded only an framework for integrating the o p e r a t i o n s
operational perspective. One area where this management and marketing approaches within
combined view might yield important insights a service operation. It focuses on customer
is in defining the proper level of service that a satisfaction with waiting time, with the goal of
firm should provide its customers. providing improved satisfaction for a given

Mark M. Davis is assistant professor of operations management at Bentley College. He received his M.B.A. and D.B.A.
from Boston University's School of Management. He also holds a B.S. in Electrical Engineering from Tufts University. Dr.
Davis has been a manufacturing engineer for the General Electric Company and a program manager for the U.S. Army
Natick Laboratories developing new food service systems for each of the branches of the military. His current research
interests focus on integrating marketing concepts, such as customer satisfaction, into the operating decision process for
services, and its resulting impact on worker productivity. He consults primarily for the food service industry and has
presented several seminars on increasing worker productivity for the National Restaurant Association and the American
Dietetic Association.
Thomas E. Vollmann. Ph.D., is currently professor of operations management at Boston University's School of
Management. Professor Vollmann received his B.S., M.B.A., and Ph.D. from the University of California, Los Angeles.
Prior faculty positions include Dartmouth College, University of Rhode Island, Indiana University, and INSEAD (France).
Dr. Vollmann is the author of five textbooks: Operations Management: A Systems-Model Building Approach, Operations
Research for Management, Master Production Scheduling: Principles and Practice, Manufacturing Planning and Control
Systems, and Master Production-Scheduling Reprints. He has also published numerous journal articles and case studies.
Dr. Vollmann has served as a consultant to many firms on manufacturing and computerized information systems, is a
CFPIM (Certified, at the Fellow level, Practitioner in Inventory Management), and has lectured in executive development
programs throughout the world.

Vol 4 No 1 Winter 1990 61


THE JOURNAL OF SERVICES MARKETING

level of resources. An application of this satisfaction with waiting time is the type of
methodology is provided with an example in service p r o v i d e d . For e x a m p l e , in
the fast food industry, where waiting time is an supermarkets, customers with only a few items
important determinant in the customer's firm usually cannot justify waiting long periods of
selection process. Finally, a procedure is time to go through the checkout line, while
presented for extending this framework to those w i t h an entire week's s h o p p i n g are
other service organizations. probably not as upset with a similar wait.
Therefore, express lines have been created for
Introduction customers with a limited number of items,
A common thread among many studies in a l l o w i n g s u p e r m a r k e t s to c o m p e t e w i t h
operations management has been recognition convenience stores.
of the need to c o n s i d e r services from a
perspective that includes marketing as well as Still another example of the influence of the
traditional operations management.3,8,12 One type of service on satisfaction with waiting time
major area where this combined perspective is provided with banks. On paydays some banks
might yield important insights is in defining provide a teller for "paycheck cashing only."
the proper level of customer service (in terms Customers in this line typically wait in line less
of speed) that a service firm should provide its time t h a n those w h o have a d d i t i o n a l
customers. A pure operations management transactions to conduct. Nevertheless, both may
viewpoint would focus on the tradeoff between be equally satisfied with their respective waits.
customer waiting time and the number of T h u s , for a large n u m b e r of service
workers scheduled, thereby assuming a linear operations, the relationship between customer
relationship between customer satisfaction and satisfaction (or dissatisfaction) and waiting
waiting time. A combined approach, on the time can be affected by exogenous factors.
other h a n d , w o u l d a d d r e s s c u s t o m e r
satisfaction more directly, basing it on By integrating the operations management
customer opinions about waiting time and and marketing functions we will provide a
other aspects of customer service. Thus, there framework for b e t t e r u n d e r s t a n d i n g t h e
may well be times when the use of waiting relationship between customer satisfaction and
time as a direct surrogate for c u s t o m e r waiting time, and the factors that affect that
satisfaction is not appropriate. r e l a t i o n s h i p . With t h i s i n t e r f u n c t i o n a l
approach, improved customer satisfaction can
be a c h i e v e d for a given level of staffing
Satisfaction appears to be the bridge r e s o u r c e s . We will also d e m o n s t r a t e an
between today's operational a p p l i c a t i o n in a fast food e n v i r o n m e n t ,
performance and its subsequent recognizing that this framework can most likely
be applied to many other service organizations.
impact on the customer's future
behavior toward the firm.
The Framework
For example, in fast food r e s t a u r a n t s , The Service Operations Management
customers may not mind waiting longer in line Context
on weekends than on weekdays, when time is
usually more critical. Similarly, in retail With most services, operations managers
merchandise stores, customers prior to face a tradeoff between the higher operating
Christmas are willing to wait in line for periods costs of p r o v i d i n g c u s t o m e r s with better
of time that they would not normally tolerate service and the costs of having customers wait.
during the rest of the year. In both of these This tradeoff is caused by the customer's direct
examples, the factor affecting customer interaction with the service transformation
satisfaction with waiting in line is time; with the process. Thus, instead of using a finished
fast food restaurants it is the day of the week; goods inventory to separate the customer from
with the retail stores it is the season of the year. the process, as is the case in manufacturing,
service firms "inventory" customers in the
Another factor that may affect customer form of waiting lines.

62
A FRAMEWORK FOR RELATING WATTING TIME AND CUSTOMER SATISFACTION

In a m a n u f a c t u r i n g c o n t e x t , however, a p p l y i n g Figure 1 to a service operation,


waiting time problems usually involve satisfaction appears to be the bridge between
"arrivals" of parts or some other inanimate t o d a y ' s o p e r a t i o n a l p e r f o r m a n c e and its
objects, not people. In attempting to apply subsequent impact oh the customer's future
queuing models, the service manager therefore behavior toward the firm.
r u n s into the issue of w h e t h e r the use of
waiting time as a direct surrogate for customer In most service o p e r a t i o n s , c u s t o m e r
satisfaction is appropriate. Since customers in expectations and satisfaction with respect to
service o p e r a t i o n s are typically i n v o l v e d waiting time are dependent on many factors,
directly in the provision of the service, the including the following:
q u e s t i o n arises as h o w best to m a t c h the •The customer's prior experience. The
various resources of the service firm with the customer's prior experience with waiting and
customers' expectations. the perceived wait incurred is an important
contributor to customer satisfaction.
A Marketing Perspective •The number of customers in the service
In t h e m a r k e t i n g l i t e r a t u r e , c u s t o m e r facility. Customers normally expect to wait a
satisfaction is conceived as one aspect of longer time when an operation is very busy.
customer behavior that evolves over time. 2,4,6
An illustrative model is shown in Figure 1.10 •Criticality of time to the customer. During
Figure 1 shows how customer satisfaction is weekdays (as compared to weekends), for
based upon expectations, performance, and the example, time would probably be more critical
difference b e t w e e n the t w o (i.e., d i s c o n - to working customers than it is for other types
of customers (e.g., shoppers) or at other times
of the day (e.g., evenings).
•Other distractions, intended or otherwise.
Examples of various distractions could include
slot machines next to waiting lines in casinos,
bars jn full service restaurants, and mirrors
beside elevators in hotels.
Successful service managers use their labor
resources to differentiate themselves from
competitors in terms of satisfaction. Moreover,
t h e r e is n o a b s o l u t e level of a c c e p t a b l e
customer satisfaction; instead, it is relative to
other alternatives. One has only to compare the
long waiting times of Russian consumers with
t h o s e in the U n i t e d States to see the
differences in both expected and desired
performance levels.

Combining Operations Management


and Marketing
In a t t e m p t i n g to relate waiting time to
customer satisfaction, an assumption of linear
proportionality between these two variables
may be naive. There are exogenous factors, as
was stated previously, that may also influence
the relationship between the two.
firmation). Also shown here is the resultant A service manager needs to understand the
influence of satisfaction on updating customer form of this relationship. If customers expect
attitudes, customer intentions, and future to wait at certain times of the day, for example,
c u s t o m e r b e h a v i o r t o w a r d the firm. In the service manager is well-advised not to

63
THE JOURNAL OF SERVICES MARKETING

reduce waiting times below that level if this characteristics of its customers. One was a
reduction comes at the expense of longer downtown store where customers were
waiting times that exceed customer predominantly workers with short lunch
expectations at other times of the day. periods. The other was adjacent to a suburban
shopping center where the customers were
Successful service managers use primarily shoppers and/or parents with
children. The issue here is whether different
their labor resources to differentiate demographics associated with individual store
themselves from competitors in locations can influence the relationship
terms of satisfaction. between satisfaction and waiting time. If so, a
national fast food chain might be able to equate
longer customer waiting times to a given level
Customer waiting time can be managed by of satisfaction in rural or suburban areas, as
varying crew schedules and the number of compared with waiting times in urban areas.
personnel assigned to particular tasks at
different times of the day. Within a given time Another exogenous factor that could
influence the relationship is the day of the
period, such as a week, the service manager
as considerable latitude as to when and week. As was suggested by other studies of fast
where to assign personnel. These real-time food operations,5,11 the days of the week can be
deployment decisions influence both customer divided into two categories, weekdays and
satisfaction and worker productivity. weekends. Weekday customers at lunch, for
example, are typically on their lunch hour and
are within close proximity to where they work.
Model Development On the other hand, lunch time customers on
The goal of this research effort is to develop weekends either live nearby or are out
a model that relates waiting time and customer shopping in the area of the restaurant.
satisfaction as a function of the various Time of day is a third potential factor. All
conditions (i.e., factors) under which that weekdays tend to follow a similar demand
relationship can change. A fast food operation pattern throughout the day, with very dramatic
is used as an example, and the model is swings occurring between the peak and slow
developed with several different statistical periods. This occurs because most people eat
methods, specifically factor analysis and their meals at about the same time during the
regression analysis. week. Weekend demand patterns, however,
tend to be more evenly distributed, since
Application to a Fast Food customers typically have more flexible
schedules.
Operation On-site data were collected in two parts.
In the fast food industry, the amount of time First, actual customer waiting times were
customers wait before placing their order is recorded with a stopwatch. Those customers
believed to be an important determinant of who were observed waiting in line were
customer satisfaction.1,7,9 subsequently asked to complete a self-
Existing operating rules for fast food administered survey just as they finished
operations typically focus on a fixed waiting eating. The survey asked for their opinions
time, or its surrogate, line length, to establish a about the performance of different facets of the
nonvarying customer service level. The operation, including their waiting time. These
alternative is to develop operating rules based opinions were measured on a scale from 1
on a constant customer satisfaction criterion, (very poor or very dissatisfied) to 5 (very good
resulting in a variable waiting time. or very satisfied).
A total of 723 waiting times and cor-
Data Collection responding surveys were collected at the two
Two different locations of a major fast food locations. These data represented a response
chain were selected for data collection. Store rate in excess of 90 percent. (As an incentive to
location was defined by the predominant complete the surveys, customers were given a

64
A FRAMEWORK FOR RELATING WAITING TIME AND CUSTOMER SATISFACTION

coupon for free food when the surveys were customer satisfaction, but that type of day
turned in.) (weekday or weekend) did not. As is seen in
Figure 2, customers arriving later in the day
tended to lose satisfaction faster with
Analysis and Conclusions increased waiting times. On the other hand,
customers at lunch time appeared to be the
Analysis least dissatisfied with longer waiting times.
Factor analysis was used to identify those Customers visiting during the slack period
survey questions that related to customer between lunch and dinner fell in-between.
satisfaction. The customer responses to these
questions were subsequently combined into a Conclusions
single Customer Satisfaction Index (CSI). Initially it was thought that the relative level
With customer satisfaction defined, the of customer satisfaction between lunch and
next step was to establish a relationship dinner would be the reverse of what occurred.
between satisfaction and waiting time. That is, it was expected that customers at
Regression analysis was applied here, and it lunch would be less satisfied with a given
revealed, as was expected, that customer waiting time than would those at dinner.
satisfaction was inversely related to waiting Two factors with opposite effects were
time, that is, the longer a customer waits, the identified as potentially influencing customer
less satisfied or more dissatisfied he or she satisfaction throughout a day. The first was
becomes with the service. criticality of time to the customer. Under this
Additional analysis revealed that time of scenario, customers at lunch would be more
day and store location significantly affected dissatisfied with longer waiting times than
the relationship between waiting time and customers at slack and dinner times. The other

65
THE JOURNAL OF SERVICES MARKETING

factor was the number of customers in the waiting time, subsequent analysis was
store. The logic here is that customers would conducted to provide additional insight into
expect to wait longer during busy peak periods the underlying reasons as to how and why this
and therefore would be less dissatisfied with relationship is affected.
longer waiting times. This second explanation
is apparently the more dominant influence at Additional data were collected in the.
any given location. Weekend customers, as was questionnaire regarding customer
anticipated, tended to be less dissatisfied with activities/locations before and after visiting the
longer waiting times, as is seen in Figure 3. fast food restaurant. These activities/locations
included: Shopping; At Work/School; At
Similarly, as is noted in Figure 4, suburban Home; Out for a Walk/Drive; Doing Errands;
customers tended to be less dissatisfied with and Visiting Friends/Relatives.
longer waiting times than were downtown
customers. Again, the relative relationship Only the At Work/School activity
between suburban and downtown customers significantly affected the relationship between
was initially anticipated. waiting time and customer satisfaction in both
the before and after activities. Customers in
Other Factors Influencing Waiting this category tended to be more impatient than
Time/Satisfaction Relationship other customers, as might be anticipated.
Although it is clear that time of day and A substantially greater percentage of
store location significantly affect the customers at the downtown location fell into
relationship between customer satisfaction and the At Work/School category. Thus the impact

66
A FRAMEWORK FOR RELATING WAITING TIME AND CUSTOMER SATISFACTION

of location on customer satisfaction can example that yield the same level of customer
probably be attributed to a specific customer service (i.e., customer satisfaction) for different
characteristic that can be associated with times of the day, days of the week, and
particular locations. location (suburban versus downtown). As can
Analysis was also performed on another set be seen, the manager in a suburban location
of customer characteristics to determine their would provide constant customer service
influence on waiting time and customer levels by varying the expected waiting times
satisfaction. These characteristics included: from a low of 1.60 minutes to a high of 5.44
Any Children in the Party; Special Order minutes (240 percent). There is less variation
Requests; Sales Volume during Customer's for the downtown location, where the waiting
Visit; and Whether or Not the Customer was times should vary from 2.54 to 3.49 minutes
Eating Alone. (37 percent).
Only the store's Sales Volume, which The difference between the two locations
reflected how busy the store was during the means that the suburban manager has greater
customer's visit, had a significant effect on potential to vary the waiting times required
customer satisfaction, with satisfaction by the customer. Accordingly, this manager
increasing as the store became busier. Thus, as has more latitude in deciding when and how
was suggested previously, customers can better to deploy workers. This decision would
justify their waits during busy periods. relate in some degree to shift scheduling, but
To further illustrate the impact of these to a larger degree in deciding when to deploy
factors on the relationship between waiting workers to service the customers versus the
time and satisfaction, Table 1 provides the alternative types of work required, such as
waiting times calculated from the fast food restocking and cleaning.

67
THE JOURNAL OF SERVICES MARKETING

Table 1
Waiting Times That Provide a Constant Level of Customer Service

Waiting Time (in Minutes)

Suburban Downtown

Time Period Weekdays Weekends Weekdays Weekends


Lunch 4.34 5.44 3.49 3.12
Slack 2.21 2.61 2.60 2.94
Dinner 2.82 1.60 2.54 2.88

Managerial Implications and industry. Next, a customer survey is designed


Recommendations that includes measures of customer satisfaction
at various factor levels. After the survey is fine-
The results of the foregoing analyses lead to tuned, it is administered to customers under a
several major c o n c l u s i o n s about the variety of operational conditions, and these
relationship between customer satisfaction and conditions are specifically noted. Finally, as in
waiting time. the fast food example described, measures of
The stated p r a c t i c e in most service satisfaction w i t h a p a r t i c u l a r o p e r a t i o n a l
operations is to provide a constant level of characteristic are obtained, and any factors that
customer service, but that statement is made in affect c u s t o m e r satisfaction w i t h t h a t
terms of providing a constant waiting time, parameter are identified.
such as three minutes. The implications of this Thus, this framework can be extended to the
research are that the service manager should be d e v e l o p m e n t of r e l a t i o n s h i p s b e t w e e n
providing a constant level of customer service customer satisfaction and any operational
in terms of customer satisfaction, which may parameter of interest. With this approach the
r e s u l t in a v a r i a b l e w a i t i n g t i m e t h a t is manager can identify those variables unique to
situationally dependent. his or her operation that affect the relationship
between customer satisfaction and specific
o p e r a t i o n a l p a r a m e t e r s , such as speed of
The service manager should be s e r v i c e . T h i s m o d e l a n d its a s s o c i a t e d
providing a constant level of methodology can readily be a d a p t e d to a
customer service in terms of variety of service o p e r a t i o n s , i n c l u d i n g
restaurants, retail stores, supermarkets, and
customer satisfaction. banks. It also need not be limited to only one
operational parameter, as was the case with
Although this specific study addressed this research.
waiting time in a fast food operation, the We have presented a framework and related
framework for relating customer satisfaction to m o d e l for i n t e g r a t i n g t h e m a r k e t i n g and
w a i t i n g time can be a p p l i c a b l e to other operational m a n a g e m e n t v i e w p o i n t s in a
operational parameters in a variety of services. service firm, with the goal of obtaining a
The first step, for the manager, in applying higher objective function t h a n w o u l d be
this framework to his or her firm is to identify possible if only one functional perspective
the potential factors that might influence the were considered. Of course there are many
relationship between customer satisfaction and difficulties associated with obtaining a valid
the parameter of interest. This list of factors measure of customer satisfaction, because of
can be developed through interviews with internal and external satisfaction cues. These
workers, customers, and managers within the cues relate to the highly subjective, personal

68
A FRAMEWORK FOR RELATING WAITING TIME AND CUSTOMER SATISFACTION

issues and expectations of each customer, Customer satisfaction is the link between
w h i c h often affect a c u s t o m e r ' s level of today's operating decisions by the service
satisfaction d r a m a t i c a l l y , even w h e n the manager and future profits resulting from
operational parameters of the service firm are repeat b u s i n e s s . Satisfied customers will
constant. Consequently, substantial primary continue to frequent an establishment, while
data are needed to utilize this model properly, dissatisfied customers will eventually take
and if not available, they are expensive to their business elsewhere. With the framework
obtain. In addition, skillful research methods presented here, service firms can develop
are r e q u i r e d , e s p e c i a l l y in t h e area of cost/benefit models that relate the cost of
m e a s u r i n g c u s t o m e r satisfaction (for t h e improving customer satisfaction today with the
reasons stated above), and these too are often profits from repeat future b u s i n e s s . This
costly. However, those firms large enough to additional knowledge will enable these firms
justify the expense, and willing to invest the to efficiently design service facilities that
necessary resources, will improve their p r o v i d e customers w i t h a higher level of
understanding of their customers' preference satisfaction at the same cost, thereby achieving
characteristics and the factors that affect them. a competitive advantage in the marketplace.

End Notes
1. "The American Consumer," Restaurant Business, May 1982.
2. Bearden, W. O., and J. E. Teele, "Selected Determinants of Consumer Satisfaction and
Complaint Reports," Journal of Marketing Research, vol. 20, February 1983.
3. Chase, R. B., G. B. Northcraft, and G. Wolf, "Designing High-Contact Service Systems:
Applications to Branches of a Savings and Loan," Decision Sciences, vol. 15, no. 4, Fall
1984.
4. Churchill, G. A., Jr., and C. Suprenant, "An Investigation into the Determinants of Customer
Satisfaction," Journal of Marketing Research, vol. 19, November 1982.
5. Davis, M. M., et al., "An Evaluation of the New 'Multi-Restaurant,' Food Service System for
the Marine Corps," Technical Report No. TR-81-023, U.S. Army Natick R&D Laboratories,
Natick, MA, July 1980.
6. Day, R. L. and E. L. Landon, "Toward a Theory of Consumer Complaining Behavior,"
Consumer and Industrial Buying Behavior, ed A. G. Woodside, J. N. Sheth, and P. D. Bennett.
New York: North-Holland, 1977.
7. McDonald's Corp., Market Research Study, 1976.
8. Miller, J. G., and M. B, W. Graham, "Production/Operations Management: Agenda for the
'80's," Decision Sciences, vol. 12, no. 3, 1982.
9. National Restaurant Association, Consumer Expectations with Regard to Dining at Fast Food
Restaurants, September 1983.
10. Oliver, R. L., "A Cognitive Model of the Antecedents and Consequences of Satisfaction
Decisions," Journal of Marketing Research, vol. 17, November 1980.
11. Siebold, J. R., et al., "Consumers' and Workers' Opinions of a Proposed Cash Food System:
NAS Alameda," Technical Report No. TR-76-9-FSL, U.S. Army Natick Development Center,
Natick, MA, August 1975.
12. Sullivan, R. S., "The Service Sector: Challenges and Imperatives for Research in Operations
Management," Journal of Operations Management, vol. 2, no. 4, August 1982.

69

You might also like