Modelling choice in logistics: a managerial guide and application

Purpose – Much of the research conducted in logistics/SCM has focused on satisfaction/retention of customers. This has left a critical gap for managers: before customers can be satisfied and ultimately retained, a purchase choice of logistics services has to occur. To date, very little research has addressed how logistics customers make purchase choice decisions about logistics services. The purpose of this paper, using logistics research methods, is to introduce adaptive choice modelling (ACM) to address this gap and put forth a research method that is useful for academic researchers and logistics/SCM managers.Design/methodology/approach – This paper provides an overview of ACM, along with a discussion of its important research advantages, limitations, and practical applications. Additionally, an empirical demonstration of this research technique is provided to illustrate how academic researchers and logistics managers can use ACM to better understand the decision‐making process of customers when selecti...

[1]  Michael S. Garver Best practices in identifying customer-driven improvement opportunities , 2003 .

[2]  Rajeev Kohli,et al.  Consideration Sets in Conjoint Analysis , 1996 .

[3]  Jan Holmström,et al.  How to design the right supply chains for your customers , 2009 .

[4]  Paul E. Green,et al.  A General Approach to Product Design Optimization via Conjoint Analysis , 1981 .

[5]  María Victoria Román González,et al.  Application of the latent class regression methodology to the analysis of Internet use for banking transactions in the European Union , 2007 .

[6]  P. Green,et al.  Conjoint Analysis in Consumer Research: Issues and Outlook , 1978 .

[7]  Bart J. Bronnenberg,et al.  Limited Choice Sets, Local Price Response, and Implied Measures of Price Competition , 1996 .

[8]  Kevin G. Corley,et al.  Building theory about theory building: What constitutes a theoretical contribution? Academy of Management Review, , . , 2011 .

[9]  Cheri Speier,et al.  THE ROLE OF SECURITY IN THE FOOD SUPPLIER SELECTION DECISION , 2009 .

[10]  E. Anderson,et al.  What drives the choice of a third party logistics provider , 2011 .

[11]  T. Stank,et al.  TEN-MEGA TRENDS THAT WILL REVOLUTIONIZE SUPPLY CHAIN LOGISTICS , 2000 .

[12]  Edward M. Bergman,et al.  Modelling preferences and stability among transport alternatives , 2002 .

[13]  Paul E. Green,et al.  Conjoint Analysis in Marketing: New Developments with Implications for Research and Practice , 1990 .

[14]  Douglas M. Lambert,et al.  Developing a Customer‐focused Logistics Strategy , 1992 .

[15]  J U Sterling,et al.  ESTABLISHING CUSTOMER SERVICE STRATEGIES WITHIN THE MARKETING MIX , 1987 .

[16]  J. Mentzer,et al.  Logistics Service Quality as a Segment-Customized Process , 2001 .

[17]  Kent L. Granzin,et al.  Consumer logistics: Conceptualization, pertinent issues and a proposed program for research , 1989 .

[18]  Min Ding,et al.  NON-COMPENSATORY (AND COMPENSATORY) MODELS OF CONSIDERATION-SET DECISIONS , 2009 .

[19]  Amit Sachan,et al.  Review of supply chain management and logistics research , 2005 .

[20]  Martin Christopher,et al.  Logistics and supply chain management : creating value-adding networks , 2005 .

[21]  Michael S. Garver,et al.  Measuring the importance of attributes in logistics research , 2010 .

[22]  Michael S. Garver,et al.  Employing Latent Class Regression Analysis to Examine Logistics Theory: An Application of Truck Driver Retention , 2008 .

[23]  Romeo Danielis,et al.  Logistics managers’ stated preferences for freight service attributes , 2005 .

[24]  Thomas Reutterer,et al.  The Use of Conjoint-analysis for Measuring Preferences in Supply Chain Design , 2000 .

[25]  B. Wernerfelt,et al.  An Evaluation Cost Model of Consideration Sets , 1990 .

[26]  Greg M. Allenby,et al.  A Choice Model with Conjunctive, Disjunctive, and Compensatory Screening Rules , 2004 .

[27]  Jerry Wind,et al.  Courtyard by Marriott: Designing a Hotel Facility with Consumer-Based Marketing Models , 1989 .

[28]  Andreas Hartmann,et al.  Subcontractor procurement in construction: the interplay of price and trust , 2010 .

[29]  F. Buttle,et al.  Assessing Relationship Quality , 2000 .

[30]  D. Lambert,et al.  Segmentation of Markets Based on Customer Service , 1990 .

[31]  Jan Holmström,et al.  Bridging Practice and Theory: A Design Science Approach , 2009, Decis. Sci..

[32]  Peter E. Rossi,et al.  Bayesian Statistics and Marketing , 2005 .