Basing Service Management on Customer Determinants: The Importance of Hot Pizza
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Verma, Rohit; Thompson, Gary M.
[Excerpt] This article presents an approach for positioning hospitality services according to customer tastes and preferences known as discrete-choice analysis (DCA), which has been successfully used for a variety of applications in marketing, consumer research, transportation, recreation and leisure research, and sociology. We present an overview of DCA and show how it can be implemented for operations management by pizza-delivery firms. The results demonstrate how customers choose pizza-delivery chains by evaluating their different attributes. We also explain how managers of pizza-delivery units can use the results as a decision-support system for evaluating the effect on market share of changing one or more attributes.
food service; discrete-choice analysis; DCA; pizza-delivery firms
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