Question

Discuss how to find a value (cost) for the time customers spend in line. The text uses numbers like $8 per hour or $25 per hour. Would your assessment of this value (as a customer) be different from your assessment (as a business manager)? How? Why? What is the nature of the conflict?

Answer 1

According to client, cost of the time spent in holding up in a line can be controlled by considering the open door costs for example the pay missed out by sitting around by holding up in a line.

In the business point of view, it is the expansion in client dissatisfaction because of holding up in the line. The more the disappointment, the higher will be the expense on the business.

Client evaluation of expenses is at singular level and it considers simply the client's chance expenses.

Business chief thinks about a general business angle and guarantees all the costs influence the business are determined and captured.