IDEAS home Printed from https://ideas.repec.org/a/eee/transe/v71y2014icp142-158.html
   My bibliography  Save this article

Attributes driving the selection of trucking services and the quantification of the shipper’s willingness to pay

Author

Listed:
  • Mesa-Arango, Rodrigo
  • Ukkusuri, Satish V.

Abstract

This paper investigates the selection of trucking services by shippers that require the movement of truck shipments. A set of pragmatic attributes are postulated to describe trucking services. They are used in a stated choice experiment that collects data and preferences from shippers. A mixed logit model is estimated in order to test the attributes and quantifying the shipper willingness to pay for them. The results are used to provide meaningful negotiation guidance for truck-related shippers and carriers, a significant contribution to literature in transportation, logistics, and supply chain management. A numerical example illustrates the use of the model.

Suggested Citation

  • Mesa-Arango, Rodrigo & Ukkusuri, Satish V., 2014. "Attributes driving the selection of trucking services and the quantification of the shipper’s willingness to pay," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 71(C), pages 142-158.
    • Handle: RePEc:eee:transe:v:71:y:2014:i:c:p:142-158
    DOI: 10.1016/j.tre.2014.09.004
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1366554514001586
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.tre.2014.09.004?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. Masiero, Lorenzo & Hensher, David A., 2010. "Analyzing loss aversion and diminishing sensitivity in a freight transport stated choice experiment," Transportation Research Part A: Policy and Practice, Elsevier, vol. 44(5), pages 349-358, June.
    2. Geweke, John & Keane, Michael P & Runkle, David, 1994. "Alternative Computational Approaches to Inference in the Multinomial Probit Model," The Review of Economics and Statistics, MIT Press, vol. 76(4), pages 609-632, November.
    3. Brownstone, David & Train, Kenneth, 1998. "Forecasting new product penetration with flexible substitution patterns," Journal of Econometrics, Elsevier, vol. 89(1-2), pages 109-129, November.
    4. Borsch-Supan, Axel & Hajivassiliou, Vassilis A., 1993. "Smooth unbiased multivariate probability simulators for maximum likelihood estimation of limited dependent variable models," Journal of Econometrics, Elsevier, vol. 58(3), pages 347-368, August.
    5. Shah, Nilopa & Brueckner, Jan K., 2012. "Price and frequency competition in freight transportation," Transportation Research Part A: Policy and Practice, Elsevier, vol. 46(6), pages 938-953.
    6. Hess, Stephane & Adler, Thomas & Polak, John W., 2007. "Modelling airport and airline choice behaviour with the use of stated preference survey data," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 43(3), pages 221-233, May.
    7. Fredrik Carlsson, 2003. "The demand for intercity public transport: the case of business passengers," Applied Economics, Taylor & Francis Journals, vol. 35(1), pages 41-50.
    8. Puckett, Sean M. & Hensher, David A., 2009. "Revealing the extent of process heterogeneity in choice analysis: An empirical assessment," Transportation Research Part A: Policy and Practice, Elsevier, vol. 43(2), pages 117-126, February.
    9. Timothy J. Gilbride & Peter J. Lenk & Jeff D. Brazell, 2008. "Market Share Constraints and the Loss Function in Choice-Based Conjoint Analysis," Marketing Science, INFORMS, vol. 27(6), pages 995-1011, 11-12.
    10. Brownstone, David & Bunch, David S. & Train, Kenneth, 2000. "Joint mixed logit models of stated and revealed preferences for alternative-fuel vehicles," Transportation Research Part B: Methodological, Elsevier, vol. 34(5), pages 315-338, June.
    11. Danielis, Romeo & Marcucci, Edoardo, 2007. "Attribute cut-offs in freight service selection," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 43(5), pages 506-515, September.
    12. Lorenzo Masiero & David Hensher, 2011. "Shift of reference point and implications on behavioral reaction to gains and losses," Transportation, Springer, vol. 38(2), pages 249-271, March.
    13. Balcombe, Kelvin & Fraser, Iain & Harris, Liam, 2009. "Consumer willingness to pay for in-flight service and comfort levels: A choice experiment," Journal of Air Transport Management, Elsevier, vol. 15(5), pages 221-226.
    14. Özkaya, Evren & Keskinocak, PInar & Roshan Joseph, V. & Weight, Ryan, 2010. "Estimating and benchmarking Less-than-Truckload market rates," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 46(5), pages 667-682, September.
    15. Train,Kenneth E., 2009. "Discrete Choice Methods with Simulation," Cambridge Books, Cambridge University Press, number 9780521766555, January.
    16. Zamparini, Luca & Layaa, John & Dullaert, Wout, 2011. "Monetary values of freight transport quality attributes: A sample of Tanzanian firms," Journal of Transport Geography, Elsevier, vol. 19(6), pages 1222-1234.
    17. Puckett, Sean M. & Hensher, David A. & Brooks, Mary R. & Trifts, Valerie, 2011. "Preferences for alternative short sea shipping opportunities," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 47(2), pages 182-189, March.
    18. Basu, Debasis & Hunt, John Douglas, 2012. "Valuing of attributes influencing the attractiveness of suburban train service in Mumbai city: A stated preference approach," Transportation Research Part A: Policy and Practice, Elsevier, vol. 46(9), pages 1465-1476.
    19. Bhat, Chandra R., 2003. "Simulation estimation of mixed discrete choice models using randomized and scrambled Halton sequences," Transportation Research Part B: Methodological, Elsevier, vol. 37(9), pages 837-855, November.
    20. E. William Moore & Janice M. Warmke & Lonny R. Gorban, 1991. "The Indispensable Role of Management Science in Centralizing Freight Operations at Reynolds Metals Company," Interfaces, INFORMS, vol. 21(1), pages 107-129, February.
    21. Train, Kenneth & Wilson, Wesley W., 2008. "Estimation on stated-preference experiments constructed from revealed-preference choices," Transportation Research Part B: Methodological, Elsevier, vol. 42(3), pages 191-203, March.
    22. Puckett, Sean M. & Hensher, David A., 2008. "The role of attribute processing strategies in estimating the preferences of road freight stakeholders," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 44(3), pages 379-395, May.
    23. McFadden, Daniel & Ruud, Paul A, 1994. "Estimation by Simulation," The Review of Economics and Statistics, MIT Press, vol. 76(4), pages 591-608, November.
    24. Patterson, Zachary & Ewing, Gordon O. & Haider, Murtaza, 2010. "How different is carrier choice for third party logistics companies?," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 46(5), pages 764-774, September.
    25. Steven Stern, 1997. "Simulation-Based Estimation," Journal of Economic Literature, American Economic Association, vol. 35(4), pages 2006-2039, December.
    26. Hensher, David A. & Puckett, Sean M. & Rose, John M., 2007. "Agency decision making in freight distribution chains: Establishing a parsimonious empirical framework from alternative behavioural structures," Transportation Research Part B: Methodological, Elsevier, vol. 41(9), pages 924-949, November.
    27. 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.
    28. Roorda, Matthew J. & Cavalcante, Rinaldo & McCabe, Stephanie & Kwan, Helen, 2010. "A conceptual framework for agent-based modelling of logistics services," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 46(1), pages 18-31, January.
    29. Hensher, David A., 1997. "A practical approach to identifying the market potential for high speed rail: A case study in the Sydney-Canberra corridor," Transportation Research Part A: Policy and Practice, Elsevier, vol. 31(6), pages 431-446, November.
    30. Christopher M Anderson & James J Opaluch & Thomas A Grigalunas, 2009. "The Demand for Import Services at US Container Ports," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 11(2), pages 156-185, June.
    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. Vega, Amaya & Feo-Valero, Maria & Espino-Espino, Raquel, 2018. "The potential impact of Brexit on Ireland's demand for shipping services to continental Europe," Transport Policy, Elsevier, vol. 71(C), pages 1-13.
    2. Afaf Haial & Loubna Benabbou & Abdelaziz Berrado, 2021. "Designing a Transportation-Strategy Decision-Making Process for a Supply Chain: Case of a Pharmaceutical Supply Chain," IJERPH, MDPI, vol. 18(4), pages 1-29, February.
    3. Menegaki, Angeliki, N. & Olsen, Søren Bøye & Tsagarakis, Konstantinos P., 2016. "Towards a common standard – A reporting checklist for web-based stated preference valuation surveys and a critique for mode surveys," Journal of choice modelling, Elsevier, vol. 18(C), pages 18-50.
    4. Neal, Craig & Koo, Tay T.R., 2020. "Demand for cargo airships: An analysis of mode choice decision making in the freight transport industry," Journal of Air Transport Management, Elsevier, vol. 83(C).
    5. Vitalii Naumov & Olha Shulika & Oleksandra Orda & Hanna Vasiutina & Marek Bauer & Myroslav Oliskevych, 2022. "Shaping the Optimal Technology for Servicing the Long-Distance Deliveries of Packaged Cargo by Road Transport," Sustainability, MDPI, vol. 14(12), pages 1-17, June.

    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. 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.
    2. Islam, Mouyid, 2015. "Multi-Vehicle Crashes Involving Large Trucks: A Random Parameter Discrete Outcome Modeling Approach," Journal of the Transportation Research Forum, Transportation Research Forum, vol. 54(1).
    3. Zhang, Rong & Zhu, Lichao, 2019. "Threshold incorporating freight choice modeling for hinterland leg transportation chain of export containers," Transportation Research Part A: Policy and Practice, Elsevier, vol. 130(C), pages 858-872.
    4. David Hensher & William Greene, 2003. "The Mixed Logit model: The state of practice," Transportation, Springer, vol. 30(2), pages 133-176, May.
    5. Paleti, Rajesh, 2018. "Generalized multinomial probit Model: Accommodating constrained random parameters," Transportation Research Part B: Methodological, Elsevier, vol. 118(C), pages 248-262.
    6. 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.
    7. 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).
    8. Andreas Ziegler, 2010. "Individual Characteristics and Stated Preferences for Alternative Energy Sources and Propulsion Technologies in Vehicles: A Discrete Choice Analysis," CER-ETH Economics working paper series 10/125, CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich.
    9. E.I.T, Mouyid Islam & Hernandez, Salvador, 2012. "Multi-vehicle Collisions involving Large Trucks on Highways: An Exploratory Discrete Outcome Analysis," 53rd Annual Transportation Research Forum, Tampa, Florida, March 15-17, 2012 207113, Transportation Research Forum.
    10. Vega, Amaya & Feo-Valero, Maria & Espino-Espino, Raquel, 2018. "The potential impact of Brexit on Ireland's demand for shipping services to continental Europe," Transport Policy, Elsevier, vol. 71(C), pages 1-13.
    11. Boris Goenaga & Victor Cantillo, 2020. "Willingness to pay for freight travel time savings: contrasting random utility versus random valuation," Transportation, Springer, vol. 47(2), pages 705-736, April.
    12. Tapia, Rodrigo Javier & dos Santos Senna, Luiz Afonso & Larranaga, Ana Margarita & Cybis, Helena Beatriz Bettella, 2019. "Joint mode and port choice for soy production in Buenos Aires province, Argentina," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 121(C), pages 100-118.
    13. Jawaher Binsuwadan & Gerard De Jong & Richard Batley & Phill Wheat, 2022. "The value of travel time savings in freight transport: a meta-analysis," Transportation, Springer, vol. 49(4), pages 1183-1209, August.
    14. Bliemer, Michiel C.J. & Rose, John M., 2011. "Experimental design influences on stated choice outputs: An empirical study in air travel choice," Transportation Research Part A: Policy and Practice, Elsevier, vol. 45(1), pages 63-79, January.
    15. Domanski, Adam, 2009. "Estimating Mixed Logit Recreation Demand Models With Large Choice Sets," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49413, Agricultural and Applied Economics Association.
    16. Maruyama, Shiko, 2014. "Estimation of finite sequential games," Journal of Econometrics, Elsevier, vol. 178(2), pages 716-726.
    17. Schmidheiny, Kurt, 2006. "Income segregation and local progressive taxation: Empirical evidence from Switzerland," Journal of Public Economics, Elsevier, vol. 90(3), pages 429-458, February.
    18. Ricardo A. Daziano & Martin Achtnicht, 2014. "Forecasting Adoption of Ultra-Low-Emission Vehicles Using Bayes Estimates of a Multinomial Probit Model and the GHK Simulator," Transportation Science, INFORMS, vol. 48(4), pages 671-683, November.
    19. Bliemer, Michiel C.J. & Rose, John M., 2010. "Construction of experimental designs for mixed logit models allowing for correlation across choice observations," Transportation Research Part B: Methodological, Elsevier, vol. 44(6), pages 720-734, July.
    20. Tho V. Le & Satish V. Ukkusuri, 2019. "Influencing factors that determine the usage of the crowd-shipping services," Papers 1902.08681, arXiv.org.

    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:transe:v:71:y:2014:i:c:p:142-158. 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.elsevier.com/wps/find/journaldescription.cws_home/600244/description#description .

    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.