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Chinese Journal of Management Science ›› 2026, Vol. 34 ›› Issue (9): 237-247.doi: 10.16381/j.cnki.issn1003-207x.2023.1707

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The Operation Decision of Service Providers Based on Extra Waiting Area Value-added Service

Wentao Zhan1, Minghui Jiang1, Xuchuan Yuan2, Yi Zhao3, Chengzhang Li4(), Chencan Lin1   

  1. 1.School of Management,Harbin Institute of Technology,Harbin 150001,China
    2.School of Business,Singapore University of Social Sciences,Singapore 599494
    3.CRRC Asset Management Co. ,Ltd. ,Shanghai 200000,China
    4.Shenzhen Credit Guarantee Group Co. ,Ltd. ,Shenzhen 518057,China
  • Received:2023-10-23 Revised:2025-01-09 Online:2026-09-25 Published:2026-09-01
  • Contact: Chengzhang Li E-mail:lcz_grown@163.com

Abstract:

The rapid development of the service industry plays a significant role in driving economic growth. To attract customers, many service providers not only offer base services but also introduce premium paid services such as Extra Waiting area value-added Service (EWS). These extra value-added services have become critical in the current service industry landscape. Not only do service providers offer EWS themselves, but third-party service companies also participate through collaborative modes. This raises challenges for service providers, such as how to make optimal decisions when operating both base services and EWS, and how to collaborate with third-party companies to maximize overall benefits.Therefore, it focuses on the following questions in this study: First, in a centralized operational mode, how should service providers determine the optimal EWS level and its pricing? Second, when EWS is provided by third-party companies, how should the optimal EWS level be set, and how should service providers adjust the pricing strategy for base services? Finally, what are the differences in EWS levels, pricing strategies, and profit performance between centralized and decentralized modes?Based on customer utility in service, the M/M/1 queuing model is used to characterize customer behavior in queues. On this basis, both a centralized mode for service providers and a collaborative mode involving third-party companies are constructed, allowing us to analyze the optimal decisions and profit performance of service providers and third-party companies. The findings reveal that (1) As customers place greater importance on EWS, indicated by increased sensitivity, the provider of EWS does not need to continuously raise the EWS level to achieve optimization. (2) In the short term, under centralized operations, EWS has an insignificant impact on the pricing of base services. However, in the long term, service providers need to moderately lower the price of base services to achieve higher profits. (3) Under decentralized operations, whether service providers and third-party companies can achieve higher unit profits in the long term compared to the short term depends on customer conversion rates. (4) Whether in short-term or long-term operations, centralized operations enable service providers to achieve higher profits from both base services and EWS. However, for service providers with limited funds and difficulties in independently operating EWS, decentralized operations may be a better strategic choice.

Key words: waiting area service, centralized operation, decentralized operation, queuing theory, optimal decision

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