A review of temporal perspective of service encounter

8/10/2019 A review of temporal perspective of service encounter

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Chair of Service Operations Management

Prof. Dr. Cornelia Schn

Supervisor: Fabian Strohm

Seminar Thesis

Perspectives on Temporal Aspects of ServiceEncounters: A Review of the Literature

Candidate in the Master of Science program

Dang, Viet Linh

Windmuhlstr. 2

68165 Mannheim

E-Mail [email protected]

Phone 015757805211

Matr. No. 1438955

Place, handover date


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Table of Contents

List of Figures .......................................................................................................... III

1 Introduction ....................................................................................................... 1

1.1 Background............................................................................................................... 1

1.2 Motivation and purpose.......................................................................................... 1

2 Impacts of service duration on customer behaviors ...................................... 2

2.1 Moderating mechanisms........................................................................................ 2

2.2 During service encounter....................................................................................... 3

2.3 After service encounter........................................................................................... 4

3 A review on temporal aspects of service encounters .................................... 5

3.1 The waiting-profit chain ........................................................................................... 5

3.1.1 Environmental moderators ........................................................................ 5

3.1.2 Personal moderators ................................................................................ 6

3.2 Service duration and behaviors during service encounter................................ 7

3.2.1 Balking behavior.............................................................................................. 7

3.2.2 Reneging behavior.......................................................................................... 9

3.2.3 Propensity to purchase................................................................................. 10

3.3

Service duration and behaviors after service encounters............................... 11

3.3.1 Gestalt characteristics................................................................................... 11

3.3.2 The role of duration....................................................................................... 13

3.3.3 Cohesiveness and purpose of evaluation.................................................. 15

4 Conclusions ..................................................................................................... 18

4.1 Theoretical implications........................................................................................ 18

4.2 Directions for further research............................................................................. 19

4

List of ReferencesPublication bibliography .................................................. XX


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List of Figures

Figure 1 The Waiting-Profit chain....................................................................................................... 2

Figure 2 Hypothetical Service Encounter Satisfaction Profile..................................................... 12


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1 Introduction

1.1 Background

In spite of the fact that most of the service encounter lasts more than a few minutes,

previous studies have only focused on short transaction where they neglected the long

and extensive service experience (Price et al. 1995). The temporal aspects of service

encounter refer to the periods during and after interacting with the service. Each of the

interaction has been shown to influence the customers behaviors differently(Bitran et

al. 2008), thus, there are numbers of ways to increase customers satisfaction by

studying how they behave during and after a service encounter.

As an important aspect of a service encounter, service duration is manipulated in

different ways to achieve managers goal. Some might want to shorten the duration to

increase turnover rate, others might want to lengthen the service time to increase

added value. In short, it depends on the nature of business and the customer segments

that the service provider targets.

By outlining the effect of duration in temporal aspects of service encounter, it is argued

that service duration in each period can account for the array of customer behaviors in

retrospective evaluations. Although recent studies have paid attention to waiting time,

the links between customer behaviors and service duration have not received sufficient

focus. Thus, there is a need for more researches on developing a suitable framework

for studying customer behaviors under aspect of time.

1.2 Motivation and purpose

The review is crtically based on the article Managing Customer Perspectives:

Temporal Aspects of Service Encounter by Bitran et al. (2008). The purpose of this

review is to give a broader understanding of the current connection between behavioral

sciences and operational management, and to appraise the existing research on

temporal aspects of service encounters. This paper also aims to show evolution of thearguments in recent years and identifies major topics in online, and offline queueing

theory by providing different perspectives of major arguments in the last two decades.

Nonetheless, this review does not intend to achieve new findings in the related field

and only contributes as a summary of the literature for academic readers who have

interest in the fields of behavioral sciences and operational management.

The following chapter starts with a brief summary of the current literature based on the

original conceptual framework. Next, chapter 3 criticizes the key arguments including

the impacts of duration on behaviors during and after service encounter. Moreover, this

chapter also examines future development of the above connections by shedding new


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light from recent findings on this area. Finally, the review is concluded with theoretical

implications as well as open questions for further research in this area.

2 Impacts of service duration on customer behaviors

2.1 Moderating mechanisms

According to A theory of the allocation of time(Becker 1965), longer service time is

perceived as being more expensive. Since time is a valuable resource, managers are

endeavoring to reduce the service duration and distract customers from their actual

service time. However, each customer perceives duration differently and may exhibit

undesired behaviors during and after the encounter if the service providers do not pay

necessary attention to them. Therefore,it is necessary to find the connection between

service duration and profit under temporal aspects. The conceptual framework

described in Figure 1 comprises the links that connect operational policies to duration

and ultimately, profitability. Among these chains of effect, environmental and personal

moderators indirectly affect behaviors during and after service encounter. By inducing

overall evaluation and behavioral intentions, these moderators can somehow increase

customer satisfaction and reduce the negative effects (if any) of the experience.

Figure 1 The Waiting-Profit chain

Source: Bitran et al. 2008 p.64

Within environmental moderators, Bitran et al. (2008, p. 64) noted that the effects of

ambient conditions together ( music, color, lighting, temperature) are undeniable but

insisted on researching individually. In the meantime, the space/function is long known

to have impact to behaviors apparently with a various examples from previous studies

(comfortable furniture, visually materialized layouts). Meanwhile, signs, symbols, and


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artifacts are carefully researched in physical and virtual environments. The personal

moderators includes personality, situation, culture, attribution, and experience.

Personalityis thearousal-seeking tendency, ability to screen environmental stimuli. On

the other hand, situation is themomentary mood, plans and purposes for being in the

servicescape. Within culturalaspect, Westerners are more impatient than those from

the East are. Finally, the effect of experience of customer to duration showed

controversial findings, which contradicted each other in different settings. Hence, it

required further research to clarify the psychology behind the contradictory

phenomena. The remainder of this section will explain the behavioral intention during

and after service encounter under the influence of service duration and waiting time.

2.2 During service encounter

There are three behaviors observed during the service encounter, which are balking,

reneging, and likelihood to purchase. While balking refers to the abandonment of

queue when customers observe the queue, reneging is the situation when customers

are already in the queue but abandon before being served.Clearly, balking and

reneging lead to loss sales and lower customer satisfaction. The reason behind these

issues is the diversity of customers patience level since patience is greatly based on

customers expectations regarding the waiting time in the system. On the other hand,

Leclerc et al. (1995, p. 117) pointed out that consumers do not value time as a

constant, rather it depends on the situation. Additionally, cost of time is hard to

estimate since customers do not have consistent number of their opportunity cost of

time. However, people are risk averse with time than with money and perhaps, they

value time more than money.

A correlation between longer waiting times and a decrease in the propensity to spend

was found by Jones, Dent (1994, p. 54) where they claimed that the longer the early

stage of service encounter, the lower the amount of money spent during service

encounter, though it is not universally hold. Additionally, as customers move closer totheir customer service representatives/service provider, their moods will increase

regardless of the queue structure. On the other hand, large queue further puts a lot of

stress on the employees and therefore deteriorate the quality of the service. Similarly,

employees are forced to make tradeoff between full-service but longer line and partial

services but shorter lines. Hence, long queue negatively influences the employees and

ultimately, the experience of the service encounter.


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2.3 After service encounter

Future behaviors of customers after service encounter such as repurchasing and

Word-of-Mouth are considered as long-term effect of service duration. Two questions

challenge the service providers in improving sales and profit: How likely is the customer

to return and choose the same service? How will service duration affect what

customers tell the others? In the end, the answers to these problems depend on how

customers summarize their experience since they are not able to recall all the details of

an experience. Bitran et al. (2008, p. 72) has identified four factors, from which

customers can formulate their retrospective summarized experience.

First, gestalt features of a service encountered are defined as the components of the

experience on which customers focus when making their summary evaluations. This

includes rate & trend, peaks & troughs, and end effects. Rate of outcome change is the

determining factor for overall evaluations. Trend is the overall change from the

beginning to the end. Meanwhile, end effect, the final level of customer satisfaction in a

service encounter, is likely to be given higher weight in evaluations.

Second, duration neglect is the overall evaluations of experiences, being based solely

on the gestalt features and not influenced by the passage of time. However, if there is

salient feature of the experience, customer behavior will not exhibit duration neglect.

Meanwhile, perception of duration can vary compared to actual duration and haveimpact to evaluations of experiences despite the absence of duration neglect. It is

noted that any improvement in reducing duration should be emphasized on customers,

rather than assume that the customers will observe the change.

Third, future behaviors of customers depend on the perception of service encounter as

a whole unit (cohesive) or a sequence of event (partitioned). The more cohesive the

experience is, the better the evaluation of an improving experience is. Finally, if the

purpose of evaluation is to decide whether to return to the service, there is stronger

sensitivity to duration than if the purpose is to communicate.

Because personal moderators cannot be changed, managers can affect overall

evaluations and behavioral intentions by controlling the duration or the environmental

moderators. This perception management framework includes providing information of

the queue number, estimated waiting time, and guarantee time with high stake. In

conclusion, the managerial implication is to select the most influential moderators of the

service setting and based on that, a relevant implementation strategy is formulated.


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3 A review on temporal aspects of service encounters

3.1 The waiting-profit chain

The waiting profit chain proposed by Bitran et al. (2008, p. 64) in Figure 1 summarized

the series of effects that show how duration in operational policies influence customer

behaviors and eventually, profitability. After operational policies of the queueing system

are installed, attentions are given to duration of the service encounters, which are

determined and affected by several factors, notably environmental and personal

moderators. Environmental moderators can be controlled and shaped by managers to

match supply with demand (Bitran, Mondschein 1997, p. 526) or influence customers

time perception and behavior (Gorn et al. 2004, p. 222). Meanwhile, personal

moderators contain a more subtle factor and are not simply manipulated according to

managers wish.These following sections will delve into detail two moderators of thelinks connecting duration to customer behaviors.

3.1.1 Environmental moderators

With regard to servicescape of environmental moderators, Orth and Wirtz (2014,

p. 297), published a paper studying consumer processing of interior service

environment. This study introduced a new concept called fluency, which is the ease

and speed of information processing or the ability to perceive the complexity of an

environment. Processing fluency can explain how visual complexity can reduce

attractiveness of service environment while visually less complex and more fluent

interiors increase positive feeling of customers. Prior study by Baker and Cameron

(1996, p. 343) likewise had suggested that customers desire spatial layout where they

can observe the progress of the queue. Nevertheless, the response from customers

will base on their perceptual style and specific shopping goal. The study by Orth and

Wirtz (2014, p. 305) further proposed that unfavorable experience of complex

environments is more significant for a more field-dependent visitors who know what to

buy beforehand. The authors suggested several ways to reduce complexity by using

less variety of objects, colors, textures complementing with organized layout and

uniformly oriented pattern. Yet, the decision should be in line with the primary target

segments where different characteristics and behaviors show significant impact on the

success of the business.

In a paper published in 1990, Alpert and Alpert (p. 128) studied the influences of music

on mood and customers purchase intentions. The authors found that sad music is

more effective in influencing buying intention than happy music and silence were.

Though the ability of music to influence mood seems possible, the extent of impact and


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the preferable direction may vary in other contexts. For instance, while happy music is

suitable in amusement park, sad music as in the ads song Feelings from AT&T

evoked a nostalgia, which positively increases the likelihood of purchase

In addition to 3 dimensions of servicescape described by Bitner (1992, p. 65), socialelements, i.e., the interaction of individuals in the service encounter, are highly

significant, especially in restaurant business (Tombs, McColl-Kennedy 2003, p. 448).

Lin and Liang (2011, p. 364) made a focus on staffs emotions as a potential

environmental moderator and studied its effect. The findings exhibited a positive

correlation between employees emotion and customers, which substantiates the

emotional contagion theory. Moreover, the results suggested customer climate is

bounded together in emotions and satisfactory. In particular, positive experience of a

customer is likely to spread to others and creates a pleasant shared experience.

With a similar approach to Lin and Liangs previous study, Fowler and Bridges (2012,

p. 179) s paper examined the potential effect of service providers mood as a

moderator of the relationship between customer satisfaction and service environment.

Specifically, the use of positive atmospherics (specifically ambient scent) resulted in

better employee attitudes, yet not better customer satisfaction, which is consistent with

the findings of Ellen and Bone (1998, p. 36). The results from an empirical study in

1998 suggested that customer attitude is remarkably influenced with the existence of

incompatible scent. On the other hand, ambient scent stimulated the courtesy,

politeness, and friendliness of customers. More importantly, the provided scent could

cause an overall overestimation of service duration, which distorts the perception of

time and greatly reduces the negative feeling of waiting. Last but not least, Fowler and

Bridges (2012, p. 177) found a correlation between service providers negative mood

and declining customer satisfaction in the presence of ambient scent. It was suggested

that the scent is likely to boost service providers self perception of behavior while

decreases customer perception of that behavior. Hence, when the service providersare calm, ambient scent has no effect; on the other hand, aversive mood from service

providers triggers a decline of customer satisfaction.

3.1.2 Personal moderators

Bitran et al. (2008, p. 65) has identified five major personal factors that control the

temporal effect on the customers satisfaction: personality traits, situational factors,

attributional moderators, cultural factors, and experience. Prior research such as

Larson (1987, p. 904) had argued that psychological and sociological factors could be

major influences in the area. He suggested that time is worth more to some groups of


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customers than to others, which means their personality traits or cultures dictate their

valuations of time. In addition, the study recalled a situation in which customers prefer

long queue than shorter one in the economic crisis because customers feel more

secured and better off with the majority. Therefore, psychological and sociological

factors do play a role in defining customers attitude toward waiting time.

With regard to cultural difference, Winsted (1997, p. 353) s study demonstratedthe

distinction of civility dimensions. Negative behaviors are considered the same in US

and Japan while dimensions regarding positive behaviors shows remarkable

differences. In US, individual demeanor is appreciated while empathy and concern are

immensely given to customer in Japan. This distinction reflects the consistency of US

individualism and Japanese collectivism. Along this line, a more recent study by Chen

et al. (2005, p. 299) emphasized the impatience of Westerners compared to people

from the East in the context of waiting for delivery.

The impact of experience to customer attitudes is still disputable. If customers

experienced delays in the service, they would sympathize with the service providers or

otherwise, they would be more enraged by the setback (Sarel, Marmorstein 1999,

p. 291). In contrast, a paper from Bogomolova (2011, p. 806) examining Australian

market, provided evidences that support the claim of Zohar et al. (2002, p. 576) that

solely loyal customers are more adapted to delays than customers using several

services. The claim was further substantiated by the consistent results collected from

several studies such as Barlow (2002, p. 401) s paper examining hospital queueing.

One possible explanation is the fact that loyal customers are not able to compare their

experience in other providers while customers who go to others are able to do.

The following sections will discuss the impact of the duration to customers behaviors

during and after service encounters. During service encounters, waiting for their turns

might evoke a hesitation to join the queue or abandon the wait if they feel the service is

not worth waiting for. Meanwhile, after the encounter, if they are very satisfied with the

services, they may choose to return or even refer the services to their relatives.

3.2 Service duration and behaviors during service encounter

3.2.1 Balking behavior

Since matching supply and demand is an inherent problem that every service providers

face, queueing for the service is typical thing that customers undergo as part of their

valuation of the services. Yet, if the queue is perceived as too long, the customers are

highly to balk and seek similar services from others. A study of Xu et al. (2007, p. 989)

posed another angle in queueing problem in which queue is managed by ticket


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consulting time with physician since customer satisfaction negatively correlates with the

waiting time.

3.2.2 Reneging behavior

While balking customers make their decision before entering the queue, renegingcustomers have to make a harder choice since they have committed their time already

in the queue. The following paragraphs will examine the influence of service duration to

reneging behavior in call centers, website environment, and physical queue.

With the growth of service industry, many companies are in the need of call center

service to increase customers satisfaction. Call centers customers often receive delay

announcement and decide to balk or wait for the service. Munichor and Rafaeli (2007,

p. 516), in a study of customers reactions to telephone waiting fillers, found that by

announcing delay time rather than playing music or apologies, reneging rate will be

lower. However, the delay time is not usually the actual time customers have to wait.

Hence, if the actual waiting time is larger than the announced, customers are likely to

renege from the system. Jouini et al. (2011, p. 546) later confirmed that reliable delay

announcement is more crucial when customer reaction level is high and when system

congestion is high.

In online settings, waiting for the website to load, transaction to complete are typical

burdens that customers have to endure. Three years after publishing nine factors that

influence customers willingness to wait in online settings, Ryan and Valverde (2006,

p. 197) continued to improve and identified four conceptual categories to examine how

e-customers respond to waiting on the internet. The majority of the factors falls into

individual factors, which are defined by the users themselves. Time pressure and fill

the wait are two factors determined by individuals but changing in every situation.

While previous study noted the difference between users response to pre-process and

in-process wait (Maister 1985, p. 116; Weinberg 2000, p. 36), the examination of users

logs showed no significant distinction between the two position of waits (Ryan,

Valverde 2006, p. 200). One possible explanation could be the salience of the waits

was unsteady that users were not aware or conscious of. Next, the author introduced

website-related factors, which consists of elements that pertain to the specific website

currently in use. Finally, task-related factors (importance, availability of alternatives )

are those belong to the distinct tasks being carried out. The results of the qualitative

study also implied a focus of websites functionality when users achievement of

objective is more crucial than their online time.


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Although queueing in physical lines is very daunting to customers, perhaps they feel

less discouraged when there are people suffering with them. A paper published by

Zhou and Soman (2003, p. 523) suggested that the more people behind a customer,

her mood is more positive and her reneging rate is lower. This was explained by the

observable factors which make social comparisons possible and people tend to derive

value from their past achievement (Bem 1972, p. 41). Continuing this line of work, Koo

and Fishbach (2010, p. 721) confirmed the theory after conducting a study in a US

university experiment. The authors further emphasized on the importance of the

presence of people behind in the physical lines, where they found that the value of

services/ goods increase (vs. decrease) if there is the presence (vs. absence) of

people behind. These findings were also the subject of analysis of Tombs and McColl-

Kennedy (2010, p. 129), who, in the context of coffee shop, found that the presence of

other customers increases the patience level of customers. This resulted into higher

endurance against wait and lower reneging rate.

3.2.3 Propensity to purchase

After long queue of wait in discouragement, customers still have to decide whether to

purchase or not. The final phase of the transaction is the most crucial for the service

provider. Successfully ending the checkout and managing service operation around

this phase can deliver considerable benefits. If the wait is dissatisfied, consumers may

decrease their intention to purchase or purchase less lucrative service. The following

paragraphs discuss the potential effects of waiting on customers tendency to

purchase.

Rafaeli et al. (2002, p. 127) conducted a study in laboratory to find the effect of queue

structure on customers attitudes. The authors found that as customers progress closer

to service providers, customers mood would get better. Though the previous study by

Jones and Dent (1994, p. 54) showed that longer waiting times correlate with lower

purchase during service encounter, the inconsistent results of both analyses can beexplained by the uncontrolled personal and environmental moderators during service

encounter. On the other hand, Allard C.R. van et al. (2012, p. 159) suggested that

instead of reducing waiting time, perception management is more appropriate and

flexible for service providers to implement. For instance, by offering customers

engagement opportunities to distract them from the wait, service providers can

decrease negative attitude of customers (Tom, Lucey 1995, p. 25).

In a positive side, waiting can be seen as a signal of services/ products quality.

Giebelhausen et al. (2011, p. 901) claimed that waiting is the additional benefit of


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products/ services that increases customerssatisfaction. Generally, if the

products/services evaluation are complex, customers might need more time to observe

and assess their likelihood to purchase. Moreover, consumers are affected by actions

of other people before them as indicated in social influence theory (Latan 1981,

p. 343). Nonetheless, price sensitive consumers consider waiting as an extra cost and

might be unwilling to wait to purchase better-quality products/services.

3.3 Service duration and behaviors after service encounters

After a service encounter, customers often face two questions, which are formed by

their memories and retrospective summaries: Should they recommend the services to

their friends? Should they continue to purchase from the services? Many studies have

supported the theory that customers cannot remember whole experience, but rather,

the salient parts of it (Ariely et al. 2000; Ariely, Zakay 2001). In addition, it is not only

what happened, but also when it happened during the service encounter that

constitutes the memory of customers (Hsee 1996, p. 255).

Ensuring customers satisfied during the service encounter is not sufficient to increase

sales and profitability. The service providers need those customers to be back and

more new customers to come. The study by Eisingerich et al. (2014, p. 48) confirmed

this theory and introduced another behavior, called customer participation, in which,

customers are encouraged to give constructive feedbacks and continue spending fromthe service provider in the future. The participation of customer suggests a proactive

effort to appreciate the services process and experience and to improve current

offerings. Indeed, as a customer relationship strategy, customer participation is better

than positive Word-of-Mouth referrals.

Hence, the key to increase customer satisfaction is to identify which features are to be

remembered and how much weight is given to each of them by the customers. Bitran et

al. (2008, p. 72) has identified a list consisting of four subcategories: the role of gestalt

features, the role of duration, role of perceptions of cohesiveness and objective of

evaluation, which are further examined in the following sections.

3.3.1 Gestalt characteristics

Gestalt characteristics of a service encountered are defined as the components of the

experience on which customers focus when making their summary evaluations. Ariely

and Carmon (2000, p. 193) have classified three important sets of gestalt feature: rate

and trend of customer satisfaction, the comfort level at peaks and the displeasure at

troughs, and the enjoyment perceived at the end of the service encounter.


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Mathematically, the rate of an event is the slope between the nearest peak and trough,

and the trend is the linear interpretation of the overall service encounters satisfaction

through time (see Figure 2). In another words, rate describes the relative change in a

period of service encounter while trend measures the average satisfaction profile of the

whole experience. Hence, the moderators described in Figure 1 collectively control the

nature of the trend. Interestingly, Soman and Shi (2003, p. 1129) found that the

consumer choice is driven by the perception of progress toward the goal which means

satisfaction with a waiting experience increases or decreases over time depending on

the customers perceptions of how much closer they are to the goal.

Figure 2 Hypothetical Service Encounter Satisfaction Profile

Source: Bitran et al. (p. 66, 2008)

Next, peaks and troughs are the turning point of customers satisfaction. Using a

memory-based framework, Montgomery and Unnava (2009, p. 91) attempted to explain

why certain gestalt features (peaks, trend and end effect) influence service evaluation.

They suggested that when one is asked his/her evaluation of a certain event containing

many experiences, the factors making an experience unforgettable would cause them

to be recalled. Moreover, those experiences that are recalled will influence the

evaluation of overall event (p.84). The paper further reconciled the inconsistency

between Ariely & Carmon (2000, p. 194) and Schreiber & Kahneman (2000, p. 35) in

the effect of peak intensity. The 2009 paper emphasized the distinction of the peaks,

which caused an effect to evaluation. Thus, since the peak moment described by Ariely

and Carnon was not unique, they could not find the desirable effect to evaluation.


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Last but not least, end effect is the final level of customer satisfaction in a service

encounter. Carmon and Kahneman (1996, p. 6) found that customers are more inclined

toward giving significant weight to the end outcome in a process-oriented service. This

so-called end-rule is so strong that customers discount the significance of the long

waiting time when the goal is achieved. Along this line, Dalakas (2006, p. 49) analyzed

the video sequence to study the impact customers emotion in the beginning and end

on service evaluation. The empirical findings suggested that the end-point of the

experience has the highest impact on how the experience was evaluated. Moreover,

the encounters with an increasing satisfaction rate towards the end are more favorable

and positively evaluated than others. More strikingly, a negative, negative, positive

event will be more desirable than a positive, positive, negative event.

On the other hand, the findings of Verhoef et al. (2004, p. 61) showed contradictory

results against the peak-end rule (not to be confused with end rule), where the peaks

and the end of the service are showed to contribute mostly to the service evaluation

(Fredrickson, Kahneman 1993, p. 50). They suggested that the overall trend of the

satisfaction profile was the important predictor of customer satisfaction. Besides, they

found a negative side of the end effect on customer satisfaction, which was

inconsistent with many previous researches (Ariely, Carmon 2000, p. 195; Hansen,

Danaher 1999, p. 233). The discrepancy was explained by the difference in

methodology, nature of study and experimental subjects.

3.3.2 The role of duration

Duration can affect retrospective evaluations in two ways that must be differentiated.

First, the effect of neglecting duration in service evaluation can turn a long, tiresome

queue to an unnoticeable moment. Second, the perception of duration when it is not

neglected anymore depends on how customers interpret the duration. Duration neglect

theory holds that evaluations of experiences are based solely on the gestalt features.

The retrospective memory reduces the time effect, based on the sequence of service.

Evaluation appears to be determined by a weighted average of snapshot of actual

experience. On the other hand, if the duration is too salient or notable, customers

remember the salience and consider duration of evaluations. Yet, some companies try

to show the competitive advantage where duration is the main attribute by making the

duration salient to customers (public transport, fast-food..) (Ariely et al. 2000, p. 524).

Ariely and Loewenstein (2000, p. 513) suggested that if people compare experiences

that are similar on most dimensions other than duration; they will pay more attention to


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duration. For instance, the more standardized the service is (fast food, spa...); the more

attention to duration is paid.

In coping with negative experience, Liersch and McKenzie (2009, p. 311) conducted

experiments to prove the way evaluation information listed (graphical or numericallistings) removes duration neglects effect. Their findings showed that when making

service evaluation, people use a combination of their hedonic moments (not just peaks

and end), in which the way they combine is determined by the format presentation of

the evaluation. In particular, graphical interpretation of the evaluation answer made

perception of duration significant while numerical listings of evaluation showed strong

presence of duration neglect. Under the equivalent aspects, Monga and Bagchi (2012,

p. 195) showed the sensitivity of numerical format in duration neglects effect. When

they presented the number in different measures (days and months), the observed

result suggested a greater sensitivity to changes in duration when the unit was large

(vs. small) was induced to concrete-mindset (vs. abstract) subjects.

However, if duration is a significant feature, it will be perceived and noticed by

customers. Yet, no customers perception is the same: customers perceive duration to

be larger or smaller than actual duration. Hence, when duration is salient, it still can

have no influence on evaluation if it is perceived to be shorter than it actually is.

Perception of time spent waiting is better prediction than actual waiting time(Davis,

Heineke 1998, p. 64)though it is not universally true. Burton et al. (2003, p. 299) noted

that any improvement in reducing duration should be emphasized to customers, rather

than assuming that the customer will observe the change. The authors implied that

actual performance imposes on customers substantially than other factors that are only

perceived by customers. By constrast, if actions taken to reduce service duration

appeared to be more explicitly during the service, customers might perceive it longer

than usual. Ahn et al. (2009, p. 514) proposed a theory of how customers measure

duration of their experience. Their results showed that the memory of an experience

was encoded and later is retrieved to recall the experience. In particular, the more

features, intersections the service encounter contains, the longer the perceived

duration is.

Indeed, the gap between actual wait time and perceived wait time is an important factor

that affects customer satisfaction.Jones and Peppiatt (1996, p. 60) concluded that in

waits shorter than five minutes, customers overestimate their wait time by nearly 40%,

decreasing their utility from the experience. Thus, closing the gap requires additional

attention and resources. Taylor (1994, p. 66)found that the more waiting time is filled,


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the higher hedonic level they get since they feel unoccupied time longer than occupied

time (Maister 1985, p. 115). Musicals fillers, social interaction (group waiting) can also

distract the perception of waiting in line, therefore, mentally decrease the time a

consumer spends waiting (Krishna 2010, p. 128)

Mantel and Kellaris (2003, p. 536) found that cognitive resources required in critical

thinking and evaluation have influence to how people perceive duration. If cognitive

resources are not enough (drunk, passed out, sleepy), people use heuristics so they

remember very little from the event. On the other hand, sufficient cognitive resources

available drive better cognitive thinking so people remember more precisely and easily.

Similarly, Fasolo et al. (2009, p. 224) examined the cognitive thinking of consumers

when making choice among a number of options. The results showed that people tend

to overestimate duration if they choose from a small number of options while

underestimate the time spent if the choice is drawn from a larger pool of selections.

One possible explanation is that the cognitive resources required to remember the

choice in second case surpass the resources available, as described in the theory of

Mantel and Kellaris (2003, p. 532)

Finally yet importantly, service duration serves as a key measurement of the service

quality in process-oriented service. Chiou (2008, p. 1149) suggested customers use

service duration as a criteria for service judgments. In particular, customers use

heuristics to estimate the link of effectiveness and duration. Hence, consumers who

think effectiveness correlates to duration will assume the reverse. Nonetheless, when

they cannot match price vis--vis duration (i.e. they cannot use heuristics), the longer

the better effect will be severely damaged.

3.3.3 Cohesiveness and purpose of evaluation

Cohesiveness of a service encounter refers to the structure of the encounter. Whether

it is cohesive or fragmented into sequence of separate event will decide how customer

perceive the encounter. The notion of partitioning refers to the action of dividing

experience at strategic breaking points, hence, affecting the experience of the whole.

Yet, to maximize the desirable effect, the structure (cohesive or partitioned) of the

experience needs to be considered. An improving sequence will perform worse than a

declining sequence if the improving sequence is partitioned (Ariely, Zauberman 2003,

p. 130).

Ariely and Zauberman (2003, p. 138) proposed four recommendations for service

design in the condition of ceteris paribus. First, improving sequences are favorable to

deteriorating ones. This notion was substantiated by Dalakas (2006, p. 49) who found


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that a sequence of negative, negative, positive events is preferable to a positive,

positive, negative events. Second, improving services should not be partitioned while

declining services should be partitioned. In the same aspect, Beck (2009, p. 410) found

that in a declining sequences, partitioning reduces the effect of overall negative trend

and leads to equal weight for each segments, hence moderating the effect of declining

services and improving the overall evaluation.Thirdly, partitioning at a high local point

is preferable and should lead to higher evaluations. Finally, if there must be imposed

partitioning, efforts to increase satisfaction should be better placed before breaking

points.

Along these lines, McKechnie et al. (2011, p. 160) suggested that breaking points

should be placed in the intensive phase where simultaneous production and

consumption happen. Because passengers pay more attention to this phase than to

others, they easily neglect the negative effect of the previous experience. For instance,

a letdown in check-in desk may be removed from customers service assessment as

they progress into intensive phase (onboarding) (Chen, Chang 2005, p. 511).

In a different context, Morewedge et al. (2007, p. 707) showed that people tend to

segregate their positive experiences due to the diminishing marginal utility. Yet, when

the hedonic experience is considered too small, the segregation does not maximize

their utility. For instance, eating one biscuit every day is better than eating whole bags

at once while receiving 1 cent every day for 10000 days is worse than receiving 100

EUR instantly. Therefore, partitioning an improving service with appropriate number of

breaking points can maximize customershedonic utility. On the other hand, it is easy

to over-segregate theservice, leading to decrease the overall experiences.

The role of cohesiveness of an experience is further supported by noting how objective

of the evaluation affects the way the evaluation is formed. Two reasons to make

summary evaluations proposed by Ariely and Loewenstein (2000, p. 511) are:

communicating their experience to others and deciding whether to repeat the

experience. The authors suggested that if the purpose is the latter, there is stronger

sensitivity to duration than if the purpose is to communicate. Indeed, the perception of

duration is unique among customers so including ones perception of duration will

disturb the perception of others when communicating the experience (p. 512).

In repeat-purchase situations, when customers do not know exactly the duration of the

next experience or have no control over it, but assume it will be similar to the prior

experience, they will consider duration in evaluations. However, if the customers know

the duration or can control the duration, they will not encode duration into the


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evaluations (Ariely, Loewenstein 2000, p. 521). On the other hand, in novel purchase

settings, Rajesh Bhargave (2009, p. 122) found that an intense beginning of novel

experience influences overall evaluation compared to that of conventional experience.

Indeed, novelty evokes an orienting response and subjective arousal from customers

who pay more attention to the more salient experience. In particular, a long exposure at

the start of a new spa service will result in better evaluation compared to inducing the

same duration in the beginning of a habituated service. Yet, the inconsistent effect of

arousal on memory and the absence of neutral condition of prior experience may

require further researches in novel purchase.

Additionally, the way the questions are constructed and the objective of the evaluation

will influence the extent to which customers take the duration of the wait into account

(Ariely, Loewenstein 2000, p. 513). If the customers interpret the target of the question

and because of that, they recall the duration of the encounter, it might not be that

duration neglect does not take effect but rather the surveys objective let customers

think so. Hence, managers should introduce the most salient parts of their services,

which customers are likely to give the highest weight, into the evaluation form in order

to attract these customers and their friends.

Moreover, not all part of the experience is evaluated equally; some parts may be rated

higher than others are, depending on the type of evaluation question and the structure

of the survey. Zauberman et al. (2006, p. 208) found that in an improving experience,

people favor ratings of feelings (hedonic tasks) to judgmental evaluations (informational

tasks). Hedonic task evaluation is more likely to be influenced by rate of change and

how experience develops (Ariely, Carmon 2000, p. 196) while informational task

evaluation requires a formation of hypothesis from the beginning (Hogarth, Einhorn

1992, p. 12), thus, putting more emphasis on the initial part of the experience.

Consequently, a declining experience will lead to positive result in informational tasks

while an increasing experience will cause a positive result in hedonic tasks.

In the end, the managerial implications of duration perception in service encounter are

to create positive ends and to partition the sequence when the final ending is negative.

On the other hand, the structure of the survey as well as the nature of customers

purchase will dictate the customers interpretation of the survey questions. The

challenges remain for managers to turn those interpretations into their favors.


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4 Conclusions

4.1 Theoretical implications

This review contributes to the understanding of how the duration of service encounters

can affect profits by evaluating past literatures and identifying research gaps in this

area. In this paper, inconsistency of the appearance of peak intensity from the previous

studies (see 3.3.1)is reconciled while new discrepancy is found (see 3.2.2). The

study by Bitran et al. (2008) have shaped and connected the links between duration

and profitability. These links suggest a management approach to increase customers

satisfaction by using perception management tool. In addition, the authors have shown

a coherent writing style that connects every section and subsection together. The

paper was structured with chapters that followed a conceptual framework describing

the connections from duration to profitability. At the beginning of each section, anoverview of the content was given and from that start, arguments are developed with

supporting evidences and contrasting research. Nevertheless, some arguments were

mixed between three queue structures which rendered the paragraphs difficult to

follow.

The managements of environmental and personal moderators are crucial to the service

providers. The usage of music, organized layouts, and friendly staffs can partly reduce

the attention toward time. Meanwhile, personal attributes belong to customer cannot be

easily affected so managers have to adapt to situations. During the wait, customers

may balk or renege if they feel their reservation waiting time is exceeded. Hence,

something should be done to change that perception. Informing estimated waiting time,

complementing free coffee or playing music filler and even encouraging social

interaction are suggested as a counter-measure to queue abandonment. Along with

traditional physical queue, online queue, ticket queue, and tele-queue are mentioned

and analyzed intensively. These queues exhibit distinguished characteristics and

require different moderators to manage customers perception.

In conclusion, customer behaviors are influenced by service duration and two

moderators which can be seen Figure 1. The key of management is to control service

duration and environmental moderators to influence overall evaluations and customer

behavior in managers favor. Nonetheless, since people respond their environments

holistically (Bitner 1992, p. 65), all implementation should be synergized and

coordinated to target a customer segment successfully.


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4.2 Directions for further research

The past researches have explained the connection betwwen duration and profitability

under the influence of time. Nonetheless, along the arguments, there still lack the

guarantee of assumptions and an absence of knowledge in a number of important

issues. First, it is important to examine temporal aspects of service encounter in

different type of services. Different queue settings (online, offline) and service business

(call center, hospital, restaurants) have their own characteristics. Hence, focusing on

one type will enhance the significance of the findings and the importance of the queue

characteristics that firms employ. Second, we need to find mathematical connection

between the personal moderator and profitability under the effect of duration. Since a

large research body has focused on qualitative study in these connections, a

quantification of these studies will guarantee the profit from implementing the

improvement. Moreover, quantifying psychological factor in scheduling and service

segmentation leads to more efficient policies than conventional ways (Carmon et al.

1995, p. 1813). Finally, how customers perceive the partitioning of the experience is

currently unknown though cohesiveness of an experience plays a crucial role in

evaluation. This requires more evidence in the connection between the psychological

behaviors of customers and experience partitioning.


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