Balancing IT with the human touch: Optimal investment in IT-based customer service

Sulin Ba, Jan Stallaert, Zhongju Zhang

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Abstract

In order to cut costs, companies have employed digital systems and moved service offerings online. However, the digital systems providing online-based services (e-service) have always been complemented with or supported by human-based service (h-service). Whereas h-service has total costs that increase with the demand for services, e-service mainly requires a fixed investment upfront which can be amortized over the totality of customers served. Considering the different nature of the costs of h-service and e-service and the heterogeneity of customer preferences, we derive the optimal mix of h-service and e-service for a firm vis-à-vis its competitor.

Original languageEnglish (US)
Title of host publication2008 Workshop on Information Technologies and Systems, WITS 2008
PublisherSocial Science Research Network
Pages188-193
Number of pages6
StatePublished - 2008
Externally publishedYes
Event2008 Workshop on Information Technologies and Systems, WITS 2008 - Paris, France
Duration: Dec 13 2008Dec 14 2008

Other

Other2008 Workshop on Information Technologies and Systems, WITS 2008
CountryFrance
CityParis
Period12/13/0812/14/08

ASJC Scopus subject areas

  • Information Systems
  • Control and Systems Engineering

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    Ba, S., Stallaert, J., & Zhang, Z. (2008). Balancing IT with the human touch: Optimal investment in IT-based customer service. In 2008 Workshop on Information Technologies and Systems, WITS 2008 (pp. 188-193). Social Science Research Network.