Abstract:In customer-intensive services, advertising can increase customers’ patience and bring more utility to customers. However, customers’ different perceptions of advertising can affect their utility and indirectly affect the decision making of the service provider. Thus, this paper uses the M/M/1 queueing model to study the optimal decision making of customer-intensive service providers in different markets according to the customers’ heterogeneity. We first classify customers into two categories: high sensitivit… Show more
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