USING SIMULATION TO ESTIMATE THE IMPACT OF SELF‐SERVICE TECHNOLOGY IMPLEMENTATION ON CUSTOMER WAITING TIMES AND SYSTEM OPERATING COSTS
Open Access
- Author:
- Kokkinou, Alinda
- Graduate Program:
- Hotel, Restaurant, and Institutional Management
- Degree:
- Doctor of Philosophy
- Document Type:
- Dissertation
- Date of Defense:
- July 15, 2010
- Committee Members:
- David Allen Cranage, Dissertation Advisor/Co-Advisor
David Allen Cranage, Committee Chair/Co-Chair
Michael J Tews Jr., Committee Member
Hubert Van Hoof, Committee Member
Arunachalam Ravindran, Committee Member - Keywords:
- hospitality
self-service technology
simulation
services - Abstract:
- The purpose of the present study was to examine the assumption that the implementation of self-service technology (SST) in a service delivery process could simultaneously improve service levels and decrease system operating costs, two performance measures of interest to decision makers. The context of the study was a hotel check-in process where, after SST implementation, customers would be able to choose between checking in using a self-service kiosk (SSK), or using a service employee. First, using a sample of hotel customers, an online scenario-based survey was used to determine whether the number of customers waiting in line was a predictor of customer choice between using a service employee and using an SSK. Second, a simulation model was developed to estimate the effect of SST implementation on service levels under different supply and demand conditions. Third, as service level and operating costs are somewhat conflicting objectives, a graphical approach to solving a bi-criteria selection problem was used to compare different combinations of service employees and SSKs. Findings of the scenario-based survey provide evidence that, in addition to their perceived usefulness, need for interaction, and anticipated quality, customers decide whether to use SST or use a service employee based on the length of the waiting line for each alternative. The results of the simulation study show that, under the assumed demand and supply conditions, SST provides satisfactory service levels at a lower operating cost. Furthermore, under high demand conditions, a service delivery process including SST outperforms a service delivery process where no SST alternative is available. When the SSK does not perform as well as expected, namely processing times and failure rates of the SSK are high, the introduction of SST has a negative impact on service levels. Implications for further research and practice are discussed.