Determinant Criteria in the Ocean Carrier Selection Process

INTRODUCTION Both industry and academia have begun to place more importance on determining and understanding the selection criteria used in choosing a transportation provider. Differences between motor carriers and shippers perception of choice criteria have been explored by numerous researchers such as Evans and Southard (1974), Abshire and Premeaux (1991a) and Murphy, Daley, and Hall (1997). The effect of deregulation on the selection process was examined by Bardi, Bagchi, and Raghunathan (1989), while Evers, Harper, and Needham (1996) focused on the perceptions of attributes pertaining to intermodal rail-truck services. These studies found a variety of significant differences in the perceptions of shippers and carriers. While the buyer behavior literature very clearly shows that a variety of evaluative criteria are used in the final selection of a product or service there are those few criteria that must be present for the product or service to be selected. Alpert (1971) referred to those attributes as determinant attributes. These are product or service attributes that actually lead to selection of the product or service and these attributes are generally best determined through the use of direct questioning techniques. It seems clear, based on the concept of determinant criteria, that some criteria are more important in the selection process than are other criteria. The purpose of this study is to extend the carrier selection literature into international ocean carriers which is a mode of transportation that has received much less study than other modes of transportation. While other studies have examined perceptual attribute differences between carriers and shippers, this study further expands the literature base by examining not only perceptual attribute differences that exist between carriers and shippers involved in international shipping, but also explores the use of determinant criteria used in the selection process of these carriers. LITERATURE REVIEW As noted earlier, Alpert (1971) has shown that certain product attributes are perceived as being more important than other attributes and that for a particular product or service to be chosen these attributes must be present. These attributes are known as determinant attributes as they ultimately determine if the product or service will be purchased. Sinclair and Stalling (1990) point out that consumers tend to look at products as possessing bundles of attributes and that these attributes differ in their contribution to evaluation and choice. They further note that determinant attributes are those that are not only important but also tend to separate one competitor from another and that by understanding those differences, manufacturers can adjust their marketing strategies to fit each market segment. Over the years, a variety of methods have been used to detect which attributes could be considered determinant in nature. Aipert (1971) reported that a Direct Dual Questioning Determinant Attribute (DQDA) method was most appropriate in uncovering determinant attributes. Saaty (1977) found that an Analytic Hierarchy Process (AHP) provided a method for identifying determinant attributes. More recently, Armacost and Hosseini (1994) refined the AHP technique and produced a technique referred to as AHP-DA which uses the importance results derived from AHP and combines them with difference measures based on priorities of alternatives. The DQDA method and the AHP-DA methods were found to perform in a similar fashion for smaller numbers of attributes while the AHP-DA method was found to be more effective in handling a large number of attributes. It is reasonably clear that whichever method is used to attempt to identify determinant attributes, the ultimate purpose is still to use those attributes in the formulation of marketing strategy. This can only be accomplished if the product or service provider fully understands the needs of the consumer and how the consumer perceives the product or service attributes in question. …