Industrial service design in the Asia-Pacific shipping industry: a strategic paradox?
by Derek Nind, Melanie McAtamney, Sheelagh Matear
International Journal of Logistics Systems and Management (IJLSM), Vol. 3, No. 4, 2007

Abstract: Dixon (2001) examined the choice preferences and trade-offs exhibited by shipping customers in New Zealand who purchase North Asian shipping services. This paper presents and discusses the preliminary results from Chinese shippers' perspective in comparison. A discrete choice model was constructed, which allowed decision outcomes and choice processes to be assessed. Comparing Dixon's (2001) results, the importance placed upon service dimensions differ. New Zealand shippers are not price conscious but influenced by the frequency of the shipping line. This supports findings that highlight the tendency for shippers to place importance on service requirements (Burdg and Daily, 1985; Brooks, 1990). The results from the two studies highlight that service dimensions demanded between international shipping customers are not valued similarly. Hence, developing an optimal service design strategy in the international shipping industry presents the industrial marketing strategist with a formidable paradox. How do you balance the needs of two sets of customers with differing requirements whilst attempting to optimise service quality?

Online publication date: Thu, 12-Apr-2007

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