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Integrating customer preferences and organisation strategy for resource allocation

Author

Listed:
  • Amit Sachan
  • Subhash Datta
  • A.P. Arora

Abstract

The objective of the current research is to develop a resource allocation plan based on customer preferences and organisational strategy. The Automatic Teller Machine (ATM) service of the bank is chosen as the service in the current research. Conjoint experiments were used to identify choice patterns of customers. Customer share maximising service designs were obtained under three generic strategies, i.e., cost leadership, differentiation and focus strategy. Simulation is used to determine the effect of changing the level of policy attributes of optimal service designs on customer share. The effect of concentration of the bank's ATM on the bank's X customer share is determined by simulation for the three strategies. The results show how users trade off between various ATM attributes when choosing an ATM service. Various service designs were obtained under each strategy and then various scenarios were obtained by simulation. The paper provides the approach which will help managers in effectively managing resources.

Suggested Citation

  • Amit Sachan & Subhash Datta & A.P. Arora, 2008. "Integrating customer preferences and organisation strategy for resource allocation," International Journal of Services and Operations Management, Inderscience Enterprises Ltd, vol. 4(3), pages 345-367.
    • Handle: RePEc:ids:ijsoma:v:4:y:2008:i:3:p:345-367
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