Research On Operational Desicions Of Service System Under Social Interactions Effects

The rapid development of information technology and the wide application of various social media have promoted the formation of the current network and social economy.Customers' service preferences,consumption behaviors and purchase decisions are influenced by social interactions more significantly in the service market.The speed and scope of information dissemination have become faster and broader under social interactions,which makes it not only easier for potential customers to obtain various information about the target product and service but also more vulnerable to be influenced by other customers when making purchase decisions.A typical phenomenon is the herding behavior in the service market.From the perspective of service enterprise,the impact of social interaction on customer's purchasing behavior brings not only potential market opportunities,but also operational management challenges.Specifically,the price,service rate and service quality decisions,which are of vital importance to improve profit margin,increase market share,enhance service awareness,and enhance customer loyalty in the increasingly fierce market competition.At the same time,the lag of social interaction,operational management decision dissemination,customer purchase behavior,and other market factors make service system a typical complex dynamical system.Various uncertainties,non-linear correlations and time delays lead to great challenges to the effectiveness of operational management decisions.With the influence of social interactions,it is also a hot research topic in management science to study the dynamic characteristics of the service system from the perspective of the non-linear dynamical system.This paper solves the optimal decision of service-oriented enterprises on price,service rate and service quality under the influence of social interaction from the perspective of the service system.The characteristics of these services involved are the randomness of demand and the adjustability of service rate(such as those providing catering,beauty,consulting and other types of services).Therefore,the phenomenon of customer queuing and waiting always exists.After reviewing and summarizing the domestic and foreign research situations,the customer utility function and purchase decision model are developed in this paper taking into account the M/M/1 queuing mechanism.Optimal decisions on price,service rate and market share under social interactions are made in this paper.The validity of the operation management strategy on how to improve the customer demand and dynamic revenue of service enterprises are tested.The main contents of this paper are as follows:(1)The optimal operational decisions of service enterprises on price,service rate and market share under social interaction are studied when the intrinsic value of the services provided is unchanged.If the value of the service remains unchanged,customer's utility from service mainly depends on social interactions,waiting cost and price.This paper firstly establishes an optimal decision-making model within the framework of M/M/1 queuing system from the perspective of customer purchase behavior under social interactions.Then it deduces the optimal equilibrium price,service rate and market share decisions combining with the objective function mathematically under the following three premises.Customers are homogeneous while social interaction has the same impact intensity in both positive and negative aspects;customers are homogeneous and social interaction has different impact intensity in both positive and negative aspects;customers are heterogeneous,i.e.,social interactions show different impact degree on different customer groups.The results show that the impact of social interaction may be a "double-edged sword".When customers are heterogeneous,the proportion of high(low)sensitive customers is critical to the optimal price decision,the service rate decision and obtain of potential profits.(2)The optimal operational decisions of customer-intensive service enterprises on price,service rate and market share under social interactions are studied.When the intrinsic value of the service varies with the service rate,this paper establishes an optimal decision model under the condition of variable service value from the perspective of customer purchasing behavior within the framework of M/M/1 queuing system.Firstly,based on the premise of customer homogeneity,the expressions of optimal service rate,price,optimal market share and maximum revenue of customer-intensive service enterprises are derived under social interactions effects,the conclusion that social interaction can increase enterprise's revenue is drawn by analysis.In the following,it is found that the proportion of different types of customers,the benchmark service rate and the sensitivity of customers to the service rate determine the optimal decision-making of enterprises from the perspective of customer heterogeneity,and the optimal decision-making selection intervals under different conditions are divided by mathematical deduction.Finally,we study the change of the enterprise's operational decision-making on optimal price and service rate when the customer's retention utility is not the same.The results show that the optimal equilibrium decisions depend on the probability distribution of customer retention utility and the maximum value of retention utility in the service market.It is not necessary for the optimal choice to gain all potential customers in the customer-intensive market.(3)The effectiveness of service rate decisions based on queuing effect are studied.The length of the waiting queue is often a signal of high or low quality when the service quality is unknown,so a service provider always controls the service rate to ensure the existence of a long queue.This paper constructs a purchase decision model based on M/M/1 queuing theory and customer utility function.Stability,periodic fluctuation and chaos relating to demand in the service system are studied from the perspective of the nonlinear dynamical system.It may be useless when many service providers in the service market deliberately reduce the service rate to obtain a longer waiting queue in order to attract customers and increase demand.Then we study the optimal service operation decisions under the goal of profit maximization,using mathematical and operational optimization methods,and analyze the dynamic characteristics of the service system under the optimal decisions.Based on this,we analyze the optimal service rate and the stability of demand in service system influenced by queue effect and customer behavior,and the interactions between them.Finally,we conduct the simulations to show the service managers how to set the parameters of each factor reasonably and avoid the instability of demand faced by the service system.(4)The effectiveness of service quality decision-makings based on word-ofmouth effect are studied.Starting from customer purchasing behavior,this paper constructs a non-linear dynamical model of service quality and enterprise income under the influence of word-of-mouth effect,explores the effectiveness of revenuebased service quality investing strategy,anchoring and adjusting investment strategy.Then it analyses the effects of different factors(time delay,non-linear correlation,word-of-mouth effect,customer behavior)on the revenue stability of service system.The results show when service enterprises adopt revenue-based service quality investing strategy,with the change of input coefficient or word-of-mouth effect,the revenue of each period may change from stable growth to periodic fluctuation,sudden decrease or even random fluctuation.When adopting anchoring and adjusting strategies,the dynamical service system with respect to each period of revenue may exhibit more complex system behaviors,such as monotonous increasing,convergence to stable nodes,periodic oscillation,and even chaos.Through simulation analysis,managers can be guided to formulate the coefficients of service quality input model more precisely and strictly,and to avoid the parameter values which may make the revenue of service-oriented enterprises in an unstable state.Therefore,managers can control the influence scope and intensity of word-ofmouth effect through various propaganda means,so as to achieve stable and sustainable revenue growth.