IDEAS home Printed from https://ideas.repec.org/a/eee/jaitra/v84y2020ics0969699719304661.html
   My bibliography  Save this article

Choice model based analysis of consumer preference for drone delivery service

Author

Listed:
  • Kim, Sang Hyun

Abstract

It is anticipated that drones will soon be utilized for a range of applications, including delivery service. However, there has been a lack of research on consumer preference between drone delivery service and traditional delivery service. This is the first study to analyze the consumer preference for drone delivery based on a discrete choice model between the drone delivery service and traditional delivery services by truck or motorcycle. The discrete choice model is estimated using a stated preference survey, and potential consumers’ preference is analyzed for representative commodities with different price. The results show that the price and type of commodities influence consumer preference, which also depends on socio-demographic characteristics such as gender, age, and household income. Specifically, it was consistently observed in all cases that the younger the age, the higher the preference for drone delivery service. This study contributes to predicting the consumer preference for drone delivery service before real service offerings and to supporting the establishment of business strategies for companies who prepare for the new market of drone-based delivery.

Suggested Citation

  • Kim, Sang Hyun, 2020. "Choice model based analysis of consumer preference for drone delivery service," Journal of Air Transport Management, Elsevier, vol. 84(C).
    • Handle: RePEc:eee:jaitra:v:84:y:2020:i:c:s0969699719304661
    DOI: 10.1016/j.jairtraman.2020.101785
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0969699719304661
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jairtraman.2020.101785?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Mary R Brooks & Sean M Puckett & David A Hensher & Adrian Sammons, 2012. "Understanding mode choice decisions: A study of Australian freight shippers," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 14(3), pages 274-299, September.
    2. Proussaloglou, Kimon & Koppelman, Frank S., 1999. "The choice of air carrier, flight, and fare class," Journal of Air Transport Management, Elsevier, vol. 5(4), pages 193-201.
    3. Stephane Hess & John W. Polak, 2006. "Airport, airline and access mode choice in the San Francisco Bay area," Papers in Regional Science, Wiley Blackwell, vol. 85(4), pages 543-567, November.
    4. Chorus, Caspar G. & Kroesen, Maarten, 2014. "On the (im-)possibility of deriving transport policy implications from hybrid choice models," Transport Policy, Elsevier, vol. 36(C), pages 217-222.
    5. Lee, Joon-Kyu & Kim, Sang Hyun & Sim, Ga Ram, 2019. "Mode choice behavior analysis of air transport on the introduction of remotely piloted passenger aircraft," Journal of Air Transport Management, Elsevier, vol. 76(C), pages 48-55.
    6. Jou, Rong-Chang & Hensher, David A. & Hsu, Tzu-Lan, 2011. "Airport ground access mode choice behavior after the introduction of a new mode: A case study of Taoyuan International Airport in Taiwan," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 47(3), pages 371-381, May.
    7. Greene, William H. & Hensher, David A., 2003. "A latent class model for discrete choice analysis: contrasts with mixed logit," Transportation Research Part B: Methodological, Elsevier, vol. 37(8), pages 681-698, September.
    8. Green, Paul E & Srinivasan, V, 1978. "Conjoint Analysis in Consumer Research: Issues and Outlook," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 5(2), pages 103-123, Se.
    9. Shinghal, Nalin & Fowkes, Tony, 2002. "Freight mode choice and adaptive stated preferences," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 38(5), pages 367-378, September.
    10. Furuichi, Masahiko & Koppelman, Frank S., 1994. "An analysis of air travelers' departure airport and destination choice behavior," Transportation Research Part A: Policy and Practice, Elsevier, vol. 28(3), pages 187-195, May.
    11. Louviere, Jordan J & Hensher, David A, 1983. "Using Discrete Choice Models with Experimental Design Data to Forecast Consumer Demand for a Unique Cultural Event," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 10(3), pages 348-361, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Chae, Munhyun & Kim, Sang Ho & Kim, Migyoung & Park, Hee-Tae & Kim, Sang Hyun, 2024. "Potential market based policy considerations for urban air mobility," Journal of Air Transport Management, Elsevier, vol. 119(C).
    2. Xinhui Ren & Caixia Cheng, 2020. "Model of Third-Party Risk Index for Unmanned Aerial Vehicle Delivery in Urban Environment," Sustainability, MDPI, vol. 12(20), pages 1-15, October.
    3. Zhao, Bozhi & Suo, Yining & Tang, Li & Li, Chenglong & Fu, Mengying & Huang, Longyang, 2024. "Urban air mobility for time-sensitive goods with explicit customer preferences: A case study on Chengdu," Journal of Air Transport Management, Elsevier, vol. 118(C).
    4. Amalia Polydoropoulou & Athena Tsirimpa & Ioannis Karakikes & Ioannis Tsouros & Ioanna Pagoni, 2022. "Mode Choice Modeling for Sustainable Last-Mile Delivery: The Greek Perspective," Sustainability, MDPI, vol. 14(15), pages 1-14, July.
    5. Cai, Lanhui & Yuen, Kum Fai & Xie, Diancen & Fang, Mingjie & Wang, Xueqin, 2021. "Consumer's usage of logistics technologies: Integration of habit into the unified theory of acceptance and use of technology," Technology in Society, Elsevier, vol. 67(C).
    6. Burke, Andrew & Zhao, Jingyuan & Miller, Marshall & Fulton, Lewis, 2023. "Vehicle Choice Modeling for Light-, Medium-, and Heavy-Duty Zero-Emission Vehicles in California," Institute of Transportation Studies, Working Paper Series qt7437p058, Institute of Transportation Studies, UC Davis.
    7. Koh, Le Yi & Lee, Jia Yi & Wang, Xueqin & Yuen, Kum Fai, 2023. "Urban drone adoption: Addressing technological, privacy and task–technology fit concerns," Technology in Society, Elsevier, vol. 72(C).
    8. Sham, Rohana & Chong, Han Xi & Cheng-Xi Aw, Eugene & Bibi Tkm Thangal, Thahira & Abdamia, Noranita binti, 2023. "Switching up the delivery game: Understanding switching intention to retail drone delivery services," Journal of Retailing and Consumer Services, Elsevier, vol. 75(C).
    9. Tamakloe, Reuben & Zhang, Kaihan & Atandzi, Jonathan & Park, Dongjoo, 2024. "Examining urban delivery service user profiles and determinants of drone delivery adoption in Ghana considering usage before and after the COVID-19 pandemic," Transport Policy, Elsevier, vol. 146(C), pages 279-294.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Haghani, Milad & Bliemer, Michiel C.J. & Hensher, David A., 2021. "The landscape of econometric discrete choice modelling research," Journal of choice modelling, Elsevier, vol. 40(C).
    2. Morlotti, Chiara & Birolini, Sebastian & Malighetti, Paolo & Redondi, Renato, 2023. "A latent class approach to estimate air travelers’ propensity toward connecting itineraries," Research in Transportation Economics, Elsevier, vol. 99(C).
    3. de Luca, Stefano, 2012. "Modelling airport choice behaviour for direct flights, connecting flights and different travel plans," Journal of Transport Geography, Elsevier, vol. 22(C), pages 148-163.
    4. Zhou, Heng & Norman, Richard & Xia, Jianhong(Cecilia) & Hughes, Brett & Kelobonye, Keone & Nikolova, Gabi & Falkmer, Torbjorn, 2020. "Analysing travel mode and airline choice using latent class modelling: A case study in Western Australia," Transportation Research Part A: Policy and Practice, Elsevier, vol. 137(C), pages 187-205.
    5. Gevrek, Z.Eylem & Uyduranoglu, Ayse, 2015. "Public preferences for carbon tax attributes," Ecological Economics, Elsevier, vol. 118(C), pages 186-197.
    6. Freund-Feinstein, Uzi & Bekhor, Shlomo, 2017. "An airline itinerary choice model that includes the option to delay the decision," Transportation Research Part A: Policy and Practice, Elsevier, vol. 96(C), pages 64-78.
    7. Yazdanpanah, Mahdi & Hosseinlou, Mansour Hadji, 2016. "The influence of personality traits on airport public transport access mode choice: A hybrid latent class choice modeling approach," Journal of Air Transport Management, Elsevier, vol. 55(C), pages 147-163.
    8. Tao, Xuezong & Zhu, Lichao, 2020. "Meta-analysis of value of time in freight transportation: A comprehensive review based on discrete choice models," Transportation Research Part A: Policy and Practice, Elsevier, vol. 138(C), pages 213-233.
    9. Konstantinus, Abisai & Zuidgeest, Mark & Hess, Stephane & de Jong, Gerard, 2020. "Assessing inter-urban freight mode choice preference for short-sea shipping in the Southern African Development Community region," Journal of Transport Geography, Elsevier, vol. 88(C).
    10. Andre L. Carrel & Lee V. White & Christina Gore & Harsh Shah, 2024. "Subscribing to new technology: consumer preferences for short-term ownership of electric vehicles," Transportation, Springer, vol. 51(3), pages 875-909, June.
    11. Feo-Valero, María & Arencibia, Ana Isabel & Román, Concepción, 2016. "Analyzing discrepancies between willingness to pay and willingness to accept for freight transport attributes," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 89(C), pages 151-164.
    12. Choi, Jong Hae & Wang, Kun & Xia, Wenyi & Zhang, Anming, 2019. "Determining factors of air passengers’ transfer airport choice in the Southeast Asia – North America market: Managerial and policy implications," Transportation Research Part A: Policy and Practice, Elsevier, vol. 124(C), pages 203-216.
    13. Fuellhart, Kurt & O’Connor, Kevin & Woltemade, Christopher, 2013. "Route-level passenger variation within three multi-airport regions in the USA," Journal of Transport Geography, Elsevier, vol. 31(C), pages 171-180.
    14. Lee, Daeho & Shin, Jungwoo & Lee, Sangwon, 2015. "Network management in the era of convergence: Focusing on application-based quality assessment of Internet access service," Telecommunications Policy, Elsevier, vol. 39(8), pages 705-716.
    15. Lemeilleur, Sylvaine & Subervie, Julie & Presoto, Anderson Edilson & de Castro Souza, Roberta & Macchione Saes, Maria Sylvia, 2016. "Eco-certified contract choice among coffee farmers in Brazil," Working Papers MOISA 245867, Institut National de la recherché Agronomique (INRA), UMR MOISA : Marchés, Organisations, Institutions et Stratégies d'Acteurs : CIHEAM-IAMM, CIRAD, INRA, Montpellier SupAgro, Montpellier, France.
    16. Gunay, Gurkan & Gokasar, Ilgin, 2021. "Market segmentation analysis for airport access mode choice modeling with mixed logit," Journal of Air Transport Management, Elsevier, vol. 91(C).
    17. Yi-Shih Chung & Szu-Yu Tu, 2021. "Tri-reference-point hypothesis development for airport ground access behaviors," Transportation, Springer, vol. 48(5), pages 2159-2185, October.
    18. Rossolov, Oleksandr & Susilo, Yusak O., 2024. "Are consumers ready to pay extra for crowd-shipping e-groceries and why? A hybrid choice analysis for developing economies," Transportation Research Part A: Policy and Practice, Elsevier, vol. 187(C).
    19. Lu, Jing & Meng, Yucan & Timmermans, Harry & Zhang, Anming, 2021. "Modeling hesitancy in airport choice: A comparison of discrete choice and machine learning methods," Transportation Research Part A: Policy and Practice, Elsevier, vol. 147(C), pages 230-250.
    20. Tapia, Rodrigo J. & de Jong, Gerard & Larranaga, Ana M. & Bettella Cybis, Helena B., 2020. "Application of MDCEV to infrastructure planning in regional freight transport," Transportation Research Part A: Policy and Practice, Elsevier, vol. 133(C), pages 255-271.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jaitra:v:84:y:2020:i:c:s0969699719304661. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/journal-of-air-transport-management/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.