Cornell research into concierge options

21 May 2012

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Concierge medicine represents a new trend of a fee-based premier option in service offerings and usually segments patients based on their willingness or ability to wait for the service.

Despite this new trend it can still be unclear when organisations should offer a concierge option, so Associate Professor Srinagesh Gavirneni presented his research into concierge options for a service offering at a Business School seminar in February.

Srinagesh, who hails from Cornell University in the United States, spoke about his model based on queueing theory, which found that under a wide range of system parameters, introducing a concierge option benefits every player in the system.

He says these benefits are even larger when the variance in the customer waiting costs is high and the system utilisation is high. In the medical area, both the income and age are good proxies for the waiting cost that a customer attributes to waiting for the service.

Srinagesh Gavirneni is Associate Professor of Operations Management in the Johnson Graduate School of Management at Cornell University. Before joining Cornell University, he was an Assistant Professor in the Kelley School of Business at Indiana University, Chief Algorithm Design Engineer at SmartOps, a software architect at Maxager Technology and a research scientist with Schlumberger.