Increasing Sales by Reducing Congestion through Self-Service

2015-10-06 09:08:42

Dear students, faculty and staff,

Nazarbayev University Graduate School of Business invites you to Research Seminar

“INCREASING SALES BY REDUCING CONGESTION THROUGH SELF-SERVICE”

by Saravanan Kesavan – Associate Professor of Operations    

KENAN-FLAGLER BUSINESS SCHOOL, UNIVERSITY OF NORTH CAROLINA

WHEN: Thursday, October 8th, 12.00 – 13.00

WHERE: Block C-3/new GSB/GSPP Building, 3rd floor, Room 3.038

ABSTRACT:

Abstract: Managing congestion in a self-service environment such as fitting rooms in apparel retailers is vital as retailers increasingly rely on their customers to perform many tasks independently. In this paper, we examine the impact of congestion in fitting rooms on the store performance for a retailer. Using point-of-sale (POS), traffic, and labor data from a retailer, we demonstrate an inverted-U relationship between fitting room traffic and sales; this shows that managing congestion in fitting rooms is critical for store performance. As a possible solution of negative congestion effect, we run a field experiment to show that increasing fitting room labor by one person during congestion increases sales per hour by 20.71%.

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SPEAKER:

Saravanan Kesavan earned his degree of Doctor of Business Administration in Technology and Operations Management program at Harvard Business School and currently is Associate Professor of Operations at KENAN-FLAGLER BUSINESS SCHOOL, UNIVERSITY OF NORTH CAROLINA.