UNDERSTANDING CUSTOMER CHOICES IN SERVICE OUTSOURCING AND REVENUE MANAGEMENT

This dissertation investigates customer behavior modeling in service outsourcing and revenue management in the service sector (i.e., airline and hotel industries). In particular, it focuses on a common theme of improving firms’ strategic decisions through the understanding of customer preferences. Decisions concerning degrees of outsourcing, such as firms’ capacity choices, are important to performance outcomes. These choices are especially important in high-customer-contact services (e.g., airline industry) because of the characteristics of services: simultaneity of consumption and production, and intangibility and perishability of the offering. Essay 1 estimates how outsourcing affects customer choices and market share in the airline industry, and consequently the revenue implications from outsourcing. However, outsourcing decisions are typically endogenous. A firm may choose whether to outsource or not based on what a firm expects to be the best outcome. Essay 2 contributes to the literature by proposing a structural model which could capture a firm’s profit-maximizing decision-making behavior in a market. This makes possible the prediction of consequences (i.e., performance outcomes) of future strategic moves. Another emerging area in service operations management is revenue management. Choice-based revenue systems incorporate discrete choice models into traditional revenue management algorithms. To successfully implement a choice-based revenue system, it is necessary to estimate customer preferences as a valid input to optimization algorithms. The third essay investigates how to estimate customer preferences when part of the market is consistently unobserved. This issue is especially prominent in choice-based revenue management systems. Normally a firm only has its own observed purchases, while those customers who purchase from competitors or do not make purchases are unobserved. Most current estimation procedures depend on unrealistic assumptions about customer arriving. This study proposes a new estimation methodology, which does not require any prior knowledge about the customer arrival process and allows for arbitrary demand distributions. Compared with previous methods, this model performs superior when the true demand is highly variable.

Prioritizing Purposes: Two American History Teachers' Choices Among Subject Matter and Classroom-Related Purposes

This study explores how two American history teachers - one novice and one experienced – make in-the-moment choices among their history subject matter and classroom-related purposes during the teaching of an American history unit. Using classroom observations, lesson artifacts, student work products, and deep, retrospective interviews with the teachers as they watched videos of their teaching, this study maps out in detail the teachers’ purposes, both within and across different lesson activity structures. This study finds that the novice and the experienced teacher navigated among their purposes differently from each other, and that the characteristics of each teacher’s purposes navigation aligned with student outcomes in that teacher’s class. The novice teacher acted more like a juggler, with visible, reactive navigation among each purpose operational throughout his teaching; student outcomes in his class were similarly fragmented and discrete. The experienced teacher presented more like an orchestra conductor, interweaving his purposes and anticipating the navigation decisions that would create a more seamless whole; student outcomes in his class were aligned with his holistic navigation of purposes. Findings from this study have important implications for education research and teacher practice, including the relationship between teachers’ navigation among purposes and desired student outcomes, the integral role of classroom-related purposes interwoven with history subject matter purposes in teachers’ decision-making, and the differences in purposes navigation between a novice and an experienced history teacher.