Disclosing Delivery Performance Information when Consumers are Sensitive to Promised Delivery Time, Delivery-Time Conformance, and Prices

The authors investigate conditions under which it is optimal for a service firm to disclose error-free delivery-time performance information or to allow consumers to rely on error-prone proxies that are typically available to them. Proxies are allowed to exhibit different degrees and forms of error and consumers are considered to be sensitive to promised delivery times, delivery-time conformance (defined as the rate of on-time delivery), and …