Coltman, Tim and Devinney, Timothy M. and Keating, Byron W. (2010): Best-worst scaling approach to predict customer choice for 3PL services. Published in: Journal of Business Logistics , Vol. 32, No. 2 (2011): pp. 139-152.
Download (337Kb) | Preview
This study describes a simple, theoretically based methodology to analyze the nature of customer demand for third-party logistics provider service components. The method overcomes limitations in prior studies and enables us to examine the relative importance of product and service attributes as they pertain to the choice of third-party logistics providers. Two distinct types of customers populate our data: those professing operational attributes and those seeking relational attributes. The theoretical and practical implications are that improved supply chain models can be developed when separate demand structures are taken into account.
|Item Type:||MPRA Paper|
|Original Title:||Best-worst scaling approach to predict customer choice for 3PL services|
|Keywords:||best–worst scaling; customer demand structures; third-party logistics|
|Subjects:||D - Microeconomics > D0 - General > D03 - Behavioral Economics; Underlying Principles
C - Mathematical and Quantitative Methods > C2 - Single Equation Models; Single Variables > C25 - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
|Depositing User:||Byron W. Keating|
|Date Deposited:||05. Aug 2012 00:08|
|Last Modified:||12. Feb 2013 18:16|
Anderson, James C. and James A. Narus (1998), "Business Marketing: Understand What Customers Value," Harvard Business Review, Vol.76, No.11/12, pp. 53-65.
Anderson, James C., James A. Narus, and Wouter Van Rossum (2006), "Customer Value Propositions in Business Markets," Harvard Business Review, Vol.84, No.3, pp. 91-99.
Bensmail, Halima, Gilles Celeux, and Adrian E. Raftery (1993), "Inference in Model Based Clustering," Statistics and Computing, Vol.7, No.1, pp. 1-10.
Bowersox, Donald J. (1990), "The Strategic Benefits of Logistics Alliances," Harvard Business Review, Vol.68, No.4, pp. 36-45.
Bowersox, Donald J., David J. Closs, and Theodore P. Stank (1999), 21st Century Logistics: Making Supply Chain Integration a Reality. Oak Brook IL: Council of Logistics Management.
Buckley, Peter J., Timothy M. Devinney, and Jordan J. Louviere (2007), "Do Managers Behave the Way Theory Suggests? A Choice Theoretic Examination of Foreign Direct Investment Location Decision Making " Journal of International Business, Vol.38, No.7, pp. 1069-95.
Burgess, Leonne and Deborah J. Street (2003), "Optimal Designs for 2k Choice Experiments. Communications in Statistics," Theory & Methods, Vol.32, No.11, pp. 2185.
Christopher, Martin and Helen Peck (2003), Marketing Logistics (Second Edition ed.). Burlington, MA: Elsevier Butterworth-Heinemann.
Cohen, Steve and Leopoldo Neira (2003), "Measuring Preference For Product Benefits Across Countries," in Sawtooth Software Conference 2003. San Antonio, TX.
Coltman, Tim, Timothy M. Devinney, and David F. Midgley (2007), "E-Business Strategy and Firm Performance: A Latent Class Assessment," Journal of Information Technology, Vol.22, No.2, pp. 1-15.
Coltman, Tim., Timothy M. Devinney, David F. Midgley and Sunil Venaik (2008) “Formative or Reflective Scales: Two Applications of Erroneous Measurement”, Journal of Business Research Vol 61, No. 12, pp. 1250-1262.
Danielis, Romeo, Edoardo Marcucci, and Lucia Rotaris (2005), "Logistics Managers’ Stated Preferences for Freight Service Attributes," Transportation Research Part E: Logistics and Transportation Review, Vol.41, No.4, pp. 201-15. DHL (2004), "The Next Wave in Global Logistics and Delivery," a DHL commissioned study.
Dibb, Sally and Robin Wensley (2002), "Segmentation Analysis in Industrial Markets: Problems of Integrating Customer Requirements into Operations Strategy," European Journal of Marketing, Vol.36, No.1/2, pp. 231-51.
Daugherty, Patricia J., Theodore P. Stank, and D.S.,Rogers (1996), "Third-party logistics service providers: Purchasers’ perceptions,". The Journal of Supply Chain Management, Vol 32, No. 2, pp. 23–29.
Drucker, Peter F. (1974), Management: Tasks, Responsibilities, Practices. New York, Harper and Row... Eppen, Gary D. (1979), "Effects of Centralization on Expected Costs in a Muli-location Newsboy Problem," Management Science, Vol.25, No.5, pp. 498-501.
Fisher, Marshall L. (1997), "What is the Right Supply Chain for Your Product?," Harvard Business Review, Vol.36, No.4, pp. 105-16.
Flint, Daniel J., Everth Larsson, and Britta Gammelgaard (2008), "Exploring Processes for Customer Value Insights, Supply Chain Learning and Innovations: An International Study," Journal of Business Logistics, Vol.29, No.1, pp. 257-78.
Gattorna, John (2006), Living Supply Chains. London, England: Prentice Hall.
Hedgcock, William and Akshay R. Rao (2009), "Trade-Off Aversion as an Explanation for the Attraction Effect: A Functional Magnetic Resonance Imaging Study," Journal of Marketing Research, Vol.46, No.2, pp. 1-13.
Iqbal, Zafar, Rohit Verma, and Roger Baran (2003), "Understanding Consumer Choices and Preferences in Transaction-Based e-Services," Journal of Service Research, Vol.6, No.1, pp. 51-65.
Kampen, Jarl and Marc Swyngedouw (2000), "The Ordinal Controversy Revisited," Quality & Quantity, Vol.34, No.1, pp. 87−102.
Karmarkar, Uday S., 1996. Integrative research in marketing and operations management. Journal of Marketing Research 33 (5), 125–133.
Kim, Changsu, Kyung Hoon Yang, and Jaekjung Kim (2008), "A Strategy for Third-Party Logistics Systems: A Case Analysis Using the Blue Ocean Strategy," Omega, Vol.36, No. 5, pp. 522-34.
Knemeyer, Michael A and Paul R. Murphy (2005), "Is the Glass Half Full or Half Empty?," International Journal of Physical Distribution and Logistics Management, Vol.35, No.30, pp. 708-27.
Langley, C.J., E.V. Dort, and T. Ross (2005), 2005 Third Party Logistics: Results and Findings of the 10th Annual Study. Atlanta, GA: Georgia Institute of Technology.
Lee, Julie Anne, Geoffrey N Soutar, and Jordan Louviere (2007), " Measuring Values Using Best-Worst Scaling: The LOV Example," Psychology & Marketing, Vol.24, No.12, pp. 1043.
Lenk, Peter J. and Lynd Bacon, (2008), "Estimating common utility origins and scales in discrete choice conjoint with auxiliary data," Working paper, Ross School of Business, University of Michigan, Ann Arbor.
Levitt, Theodore (1960), "Marketing Myopia," Harvard Business Review, Vol.82, No.7/8, pp. 138.
Lilien, Gary L (2007), "B-to-B Segmentation for Greater ROI with Cluster Analysis ME." Pennsylvania, USA: Institute for the Study of Business Markets, The Pennsylvania State University.
Louviere, Jordan J., David A. Hensher, and Joffre D. Swait (2000), Stated Choice Methods: Analysis and Application. Cambridge: Cambridge University Press.
Mantel, Susan Powell, Mohan V. Tatikonda, and Ying Liao (2006), "A Behavioral Study of Supply Manager Decision-Making: Factors Influencing Make versus Buy Evaluation," Journal of Operations Management, Vol.24, No.6, pp. 822-38.
Marasco, Alessandra (2008), "Third-party Logistics: A Literature Review," International Journal of Production Economics, Vol.113, No.1, pp. 127-47.
Marley, Adrian and Jordan Louviere (2005), "Some Probabilistic Models of Best, Worst, and Best-Worst Choices," Journal of Mathematical Psychology, Vol.49, No.6, pp. 464-80.
McFadden, Daniel (1974), "Conditional Logit Analysis of Qualitative Choice Behavior," in Frontiers in Econometrics, P Zarembka, Ed. New York: Academic Press.
McGinnis, Michael A. C.M. Kochunny, and Kenneth B. Ackerman (1995), "Third-party logistics choice," The International Journal of Logistics Management, Vol 6, No. 2, pp. 93–102.
Menon, Mohan K. Michael A. McGinnis, and Kenneth B. Ackerman, (1998), "Selection criteria for providers of third-party logistics services: An explanatory study," Journal of Business Logistics, Vol 19, No. 1, pp. 121–137.
Mentzer, John T., Daniel J. Flint, and John L. Kent (1999), "Developing a Logistics Service Quality Scale," Journal of Business Logistics, Vol.20, No.1, pp. 9-32.
Mentzer, John T., S.M. Rutner, and K. Matsuno (1997), "Application of the Means−End Value Hierarchy Model to Understanding Logistics Service Value," International Journal of Physical Distribution and Logistics Management, Vol.27, No.9/10, pp. 630−43.
Morash, Edward A (2001), "Supply Chain Strategies, Capabilities, and Performance," Transportation Journal, Vol.41, No.1, pp. 37-53.
Olhager, Jan and Erik Seldin (2004), "Supply Chain Management Survey of Swedish Manufacturing Firms," International Journal of Production Economics, Vol.89, No.4, pp. 353-61.
Paulhus, Delroy L (1991), "Measurement and Control of Response Bias," in Measures of Personality and Social Psychological Attitudes, John P Robinson and Phillip R Shaver and Lawrence L Wright, Eds. San Diego, California: Academic Press.
Priem, Richard L. (2007), "A Consumer Perspective on Value Creation," Academy of Management Review, Vol.32, No.1, pp. 219-35.
Punj, Girish and David W. Stewart (1983), "Cluster Analysis in Marketing Research: Review and Suggestions for Application," Journal of Marketing Research, Vol.20, No.2, pp. 134-49.
Rabinovich, Elliot and Joseph P. Bailey (2004), "Physical Distribution Service Quality in Internet Retailing: Service Pricing, Transaction Attributes and Firm Attributes," Journal of Operations Management, Vol.21, No.6, pp. 651-72.
Sawhney, Mohanbir, Sridghar Balasubramanian, and Vish V. Krishnan (2004), "Creating Growth With Services," MIT Sloan Management Review, Vol.45, No.2, pp. 34-43.
da Silveira, Giovani J.C. (2005), "Market Priorities, Manufacturing Configuration, and Business Performance: An Empirical Analysis of the Order-Winners Framework," Journal of Operations Management, Vol 23, No. 6, pp. 662-675.
Sink, Harry L., and John C. Langley, (1997), A managerial framework for the acquisition of third-party logistics services," Journal of Business Logistics, Vol 18, No. 2, pp. 163–189.
Stank, Theodore P, Thomas J. Goldsby, Shawnee K. Vickery, and Katrina Savitskie. (2003), "Logistics Service Performance: Estimating its Influence on Market Share," Journal of Business Logistics, Vol.24, No.1, pp. 17.
Stank, Theodore P., S.B. Keller, and D.J. Closs (2001), "Performance Benefits of Supply Chain Logistical Integration," Transportation Journal, Vol.41, No.2/3, pp. 32-47.
Stank, Theodore P. and A.B. Maltz, (1996), "Some propositions on third-party choice: Domestic vs. international logistics providers," Journal of Marketing Theory and Practice, Vol 4, No. 2, pp. 45–54.
Street, D J and L Burgess (2004), "Optimal and Near-Optimal Pairs for the Estimation of Effects in 2-level Choice Experiments," Journal of Statistical Planning and Inference, Vol.118, No.1/2, pp. 185-99.
Swafford, Patricia M., Soumen Ghosh, and Nagesh Murthy (2006), "The antecedents of supply chain agility of a firm: Scale development and model testing.," Journal of Operations Management, Vol.24, No.2, pp. 170-88.
Swait, Joffre and M. Ben-Akiva (1987), "Empirical Test of a Constrained Choice Discrete Model: Mode Choice in São Paulo, Brazil," Transportation Research Part B Vol.21, No.2, pp. 103-15.
Swait, Joffrey (2001), "Choice Set Generation within the Generalized Extreme Value Family of Discrete Choice Models," Transportation Research Part B, Vol.35, No.7, pp. 643-66.
Treacy, Michael and Fred Wiersema (1995), The Discipline of Market Leaders. Reading, MA: Addison-Wesley Publishing Co.
Tsai, Ming-Chih, Chieh-Hua Wen, and Chiang-Shin Chen (2007), "Demand Choices of High-Tech Industry for Logistics Service Providers " Industrial Marketing Management, Vol.36, No.5, pp. 617-26.
Vaidyanathan, Ganesh (2005), "A Framework for Evaluating Third Party Logistics," Communications of the ACM, Vol.48, No.1, pp. 89-94.
Vermunt, Jeroen K. and Jay Magidson (2002), "Latent Class Cluster Analysis," in Advances in Latent Class Analysis, J.A. Hagenaars and A.L. McCutcheon, Eds. Cambridge: University Press.
Wedel, Michel and Wayne S. DeSarbo (1995), "A Mixture Likelihood Approach for Generalized Linear Models"," Journal of Classification, Vol.12, No.1, pp. 1-35.
Wedel, Michel and Wagner Kamakura (2000), Market Segmentation. London: Kluwer.
Zhao, Meng, Cornelia Droge, and Theodore P Stank (2001), "The Effects of Logistics Capabilities on Firm Performance: Customer-Focused versus Information-Focused Capabilities," Journal of Business Logistics, Vol.22, No.2, pp. 91-108.