Small Package Transportation Companies: An Exploratory Analysis

Purpose: To determine the evaluative criteria used when choosing small-package transportation companies, the level of importance of selected criteria, and how selected package carriers are perceived by small business decision makers. Methodology: Data were collected via self-administered questionnaires from a total of 31 decision makers in small businesses. The self-administered questionnaire was designed with four sections that handled separate but related topics. Questions from all four sections were taken from Parcel Shipping and Distribution’s Best Practice Survey (2006), located at www.psdmag.com/bpsurvey. asp. Results: Findings suggested that on-time delivery was the most salient evaluative criterion used by respondents. Surcharges were the least important criteria when selecting a small package transportation company. Even though, on-time delivery was ranked the highest by all job functions, office managers felt it was second to price/rates. Research/Practical Implications: First is the recognition that package shipping appears to have become more of a commodity service. Even though on-time delivery and reliability of service were considered most important, price/rates were the most important criteria for office managers. For that reason, marketers, when targeting this group must focus efforts towards bottom line cost savings, in essence, justifying the price. When targeting CEOs, presidents, CFOs, accounting personnel, directors of transportation, and shipping managers, marketers should focus efforts on the benefits of on-time delivery and reliability. In other words, “on-time delivery” seems to be the motivating factor for favoring one carrier over another in an acceptable price/rate level.