Journal article
Quantifying Service Value Using Bayesian Modeling
IIE Annual Conference. Proceedings, pp.543-548
01 Jan 2017
Abstract
The service industry today is the largest and fastest growing contribution to most global economies. Due to its often intangible nature, a methodology for quantifying service value has become a heated topic. Most of the relevant literature revolves around measuring service quality and developing conceptual frameworks of service value, and however no sound quantitative models have been developed to measure the true value of service processes. This paper proposed a generalized methodology in which service value influencing factors are divided into two hierarchical levels. Customers can give comment on the bottom level factors, while the middle level factors summarize major characteristics of a service organization. The first step of the methodology is to perform variable selection and model the major service characteristics using generalized linear model. Then Bayesian modeling is used to capture the random effects between different groups of customers to finalize overall service value. The proposed model was then applied to higher education. The results show that service value can be measured both qualitatively and quantitatively which will enable other service industries to effectively evaluate their organization.
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Details
- Title
- Quantifying Service Value Using Bayesian Modeling
- Creators
- Wanying ShiJulie DrzymalskiJingchao Li
- Publication Details
- IIE Annual Conference. Proceedings, pp.543-548
- Conference
- IIE Annual Conference
- Publisher
- Institute of Industrial and Systems Engineers (IISE)
- Number of pages
- 1
- Resource Type
- Journal article
- Language
- English
- Academic Unit
- Construction, Engineering, and Project Management and Systems Engineering [Historical]
- Identifiers
- 991019173419904721