• ABOUT
    x
    • About Kellogg
    • Our Purpose
    • Message from the Dean
    • Our Leadership Team
    • Diversity & Inclusion
    • Campuses
    • Directions

    Collaborative and
    world changing

    Kellogg brings bold ideas to the table, and we gather the people who can affect change. The world knows us for combining the power of analytics and people. This is what we teach. This is how we equip leaders to think bravely.

  • Programs
    x
    • All Programs
    • Full-Time MBA Program
    • Part-Time MBA Program
    • Executive MBA Program
    • Executive Education
    • Doctoral Program
    • Undergraduate Program
    • M.S. in Management Studies

    Discover options
    that align with your goals

    Whichever program you choose, you will enjoy an unparalleled education, taught by our exceptional faculty and grounded in the unique Kellogg culture. Regardless of the path, your destination remains the same: a world-class management education.

  • GLOBAL
    x
    • Global Reach
    • Full-Time Global Opportunities
    • Part-Time Global Experience
    • Executive MBA Global Campuses

    Expand your worldview

    Kellogg prepares you to meet the challenges of the global economy with an expansive, fully informed view of the world along multiple dimensions: through our curriculum, the diversity of our faculty and student body, and through our global presence. Prepare here to succeed anywhere.

  • FACULTY & RESEARCH
    x
    • Faculty & Research
    • Faculty Directory
    • Academic Departments
    • Research Centers
    • Publications
    • Faculty Experts Guide

    Thought leaders.
    Practitioners. Educators.

    Kellogg faculty members define and shape the fields in which they practice. Our thought leaders and pioneering researchers write the textbooks that students worldwide use in class. The difference? At Kellogg, you will learn directly from the authoritative source.

  • NEWS & EVENTS
    x
    • News & Events
    • Events & Conferences
    • Convocation
    • Speaker Videos
    • Alumni in the Media
    • Kellogg in the Media
    • Media Relations

    Breaking new ground in business every day

    The global economy is changing rapidly. Innovations and new methods of collaboration are expanding every day. These changes require leaders to think in new ways and understand the real-world application. Kellogg is at the forefront.

  • ALUMNI
    x
    • Alumni
    • Directory & Network Tools
    • Clubs and Groups
    • Career Services
    • Reunion
    • Get Involved
    • Giving

    A network for now and for life

    From day one, Kellogg students become part of a global network of 55,000 entrepreneurs, innovators and experts across every conceivable industry and endeavor. Our alumni exemplify excellence in management. They represent the advantage of the Kellogg experience.

x
Like Follow Join Us Subscribe
Faculty Search

Search by:

And/Or
Advanced Search
Search
  • Publications
    • Books by Faculty
    • Faculty Experts Guide
    • Faculty Blogs
    • Kellogg Insight
    • Kellogg Case Publishing
    • Faculty Awards
    • Faculty Editors
    • Academic Departments & Programs
    • Research Centers
    • Research Seminars
    • Contact
    • Faculty Search
    Home  Faculty and Research  Publications
    Faculty Publications
    Search Faculty Publications:
    Print Page
    Link

    How Much is a Reduction of Your Customers’ Wait Worth? An Empirical Study of the Fast-Food Drive-Thru Industry Based on Structural Estimation Methods

    Author(s):

    Allon, Gad, Awi Federgruen and Margaret Pierson

    Date:

    2012

    Abstract:

    In many service industries, companies compete with each other on the basis of the waiting time their customers’ experience, along with other strategic instruments such as the price they charge for their service. The objective of this paper is to conduct an empirical study of an important industry to measure to what extent waiting time performance impacts different firms’ market shares and price decisions. We report on a large scale empirical industrial organization study in which the demand equations for fast-food drive-thru restaurants in Cook County are estimated based on so-called structural estimation methods. Our results confirm the belief expressed by industry experts, that in the fast-food drive-thru industry customers trade off price and waiting time. More interestingly, our estimates indicate that consumers attribute a very high cost to the time they spend waiting.

    Citation:

    Allon, Gad, Awi Federgruen and Margaret Pierson. 2012. How Much is a Reduction of Your Customers’ Wait Worth? An Empirical Study of the Fast-Food Drive-Thru Industry Based on Structural Estimation Methods. Manufacturing and Service Operations Management. 13(4): 489-507.

    Kellogg School of Management
    Northwestern University
    2001 Sheridan Rd, Evanston, IL 60208
    847-491-3300 | Email
    Directions

    Campuses

    • Evanston
    • Chicago
    • Miami
    • Global Network

    Info for

    • Current Students
    • Faculty & Staff
    • Alumni
    • Recruiters 
    • Corporate Visitors

    Join the conversation

    • Twitter
    • Facebook
    • LinkedIn
    • YouTube
    • Tumblr

    © Kellogg School of Management, Northwestern University. All Rights Reserved. Privacy Policy