Bundling and Scheduling Service Packages with Customer Behavior: Model and Heuristic
Dixon, Michael J.; Thompson, Gary
Past researchers have found evidence that customers consider the sequence of event utility when evaluating past and future service experiences. Specifically, the evidence confirms that the placement of a peak event, the utility of the last event, and the slope of event utility over time all affect customer behavior and perception. We formulate an optimization problem with a focus on optimizing schedule sequence characteristics in order to maximize customer experiences. We discuss possible contexts in which this type of scheduling might be considered and, as an example, present a particularly complex model of a world‐renowned performing arts venue. We solve the problem with a simulated annealing algorithm and further discuss the complexity and opportunities associated with this type of scheduling effort.
customer behavior; customer perception; service scheduling; sequence effect based scheduling
Required Publisher Statement: © Wiley. Reprinted with permission. All rights reserved. Final version published as: Dixon, M. J., & Thompson, G. M. (2015). Bundling and scheduling service packages with customer behavior: Model and heuristic. Production and Operations Management, 25(1), 105-118. doi: 10.1111/poms.12409