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| Content Provider | ACM Digital Library |
|---|---|
| Author | Goes, Paulo Ilk, Noyan Zhao, J. Leon Yue, Wei T. |
| Copyright Year | 2011 |
| Abstract | Many e-commerce firms provide live-chat capability on their Web sites to promote product sales and to offer customer support. With increasing traffic on e-commerce Web sites, providing such live-chat services requires a good allocation of service resources to serve the customers. When resources are limited, firms may consider employing priority-processing and reserving resources for high-value customers. In this article, we model a reserve-based priority-processing policy for e-commerce systems that have imperfect customer classification. Two policy decisions considered in the model are: (1) the number of agents exclusively reserved for high-value customers, and (2) the configuration of the classification system. We derive explicit expressions for average waiting times of high-value and low-value customer classes and define a total waiting cost function. Through numerical analysis, we study the impact of these two policy decisions on average waiting times and total waiting costs. Our analysis finds that reserving agents for high-value customers may have negative consequences for such customers under imperfect classification. Further, we study the interaction between the two policy decisions and discuss how one decision should be modified with respect to a change in the other one in order to keep the waiting costs minimized. |
| Starting Page | 1 |
| Ending Page | 15 |
| Page Count | 15 |
| File Format | |
| ISSN | 2158656X |
| DOI | 10.1145/2070710.2070715 |
| Volume Number | 2 |
| Issue Number | 4 |
| Journal | ACM Transactions on Management Information Systems (TMIS) |
| Language | English |
| Publisher | Association for Computing Machinery (ACM) |
| Publisher Date | 2012-01-05 |
| Publisher Place | New York |
| Access Restriction | One Nation One Subscription (ONOS) |
| Subject Keyword | Resource allocation Customer classification Live-chat system Priority policy |
| Content Type | Text |
| Resource Type | Article |
| Subject | Management Information Systems Computer Science |
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