Customer Segmentation with Service Waiting Time

This research explored possibility of segmenting service customers on the basis of the factors that influence their waiting time. Twenty two factors were identified in a pilot studyas the key factors that influence customers waiting time. The study was conducted by a questionnaire survey in a setting of family restaurants. Using a replicated k-means partitioning program (Convergent Cluster Analysis), two resulting customer segments were identified. Each customer segment has clear and distinctive characteristics on seven (out of 22) key variables. One segment is more concerned about the intangible aspects of service employees and service process and the other the tangible aspects of service outcome. Some aspects of restaurant services that have beentraditionally thought to be important, such as food taste, kindness and courtesy of service employees, and price discounts did not help segment service customers. Implications, limitations of the study as well as directions for future research were discussed.