A shadow price approach examining service quality in a heavily captive U.S. freight transportation market: The case of grain transport

Ndembe, Elvis; Bitzan, John

doi:10.1016/j.tranpol.2021.11.021

Cited by 3 publications

(9 citation statements)

References 22 publications

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“…A recent study estimated a transportation cost function using data on individual grain shipments from the U.S. Great Plains region to examine whether shippers’ choice of rail or truck is based on observable market prices, or whether service quality consideration causes a deviation from such choices ( 4 ). Results indicated that shippers use rail more than they would if their decision was based on minimizing total transportation cost, revealing their choice of rail stems from a perception of higher quality of service.…”

Section: Rail Freight Service Quality Literaturementioning

confidence: 99%

“…Railroads are less inclined to undertake the necessary investments to provide high quality service in a freight market with limited transportation options where railroads dominate traffic ( 4 ). An argument could be made that shippers’ expectations about rail service in such a freight market are low ( 2 , 4 ). Shippers historically have low expectations or underestimate the quality of rail service ( 5 ).…”

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confidence: 99%

“…Both Class II and Class III are generally referred to as “shortline” railroads. Recent evidence has shown the linkage between shippers’ choice of rail and higher perception of rail service quality ( 4 ). Service quality reflects the quantitative and qualitative factors with respect to the requirements and expectations of a shipper ( 8 ).…”

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confidence: 99%

“…Our analysis is undertaken with the assumption that shippers’ expectations about service are low ( 2 , 4 ). We test hypotheses about shippers’ perceptions of rail service quality using the nonparametric Mann-Whitney tests with a unique pooled cross-section from a survey conducted annually eliciting shippers’ views of rail freight service in North Dakota between 2008 and 2018.…”

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confidence: 99%

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An Exploratory Comparative Analysis of Northern Plains Grain Shippers’ Perspective on Whether Operational Performance Translates into Service Quality in Freight Rail Transportation

Ndembe

Vachal

2023

Transportation Research Record: Journal of the Transportation R

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The aim of this study is to assess whether railroad operational performance indictors translate into service quality. We achieved this by using the nonparametric Mann-Whitney test to compare grain shippers’ perceptions of rail service with a pooled cross-section of survey data between 2008 and 2018 in North Dakota, U.S., involving six service dimensions: marketing and sales, timely delivery of equipment, car ordering alternatives/process, condition of equipment, availability of order information, and access to marketing personnel. The analysis is undertaken with an underlying assumption that shippers’ expectations about rail service are low. Results indicate that differences in freight rail service quality can be better explained by differences between railroads compared to differences within railroads over time. Gaps exist between shippers’ expectations and perceptions of freight rail service. It appears that some freight railroads have been able to exceed shippers’ service expectations by providing higher freight service quality than would be expected. Results suggest that the service quality of a shortline freight railroad is affected by its affiliated Class I freight railroad when comparing service quality as perceived by shortline freight railroad shippers. Although operational performance indicators including dwell time and train speed are frequently used to reflect service quality because of the dearth of knowledge about rail freight service quality, these operational performance indicators do not necessarily reflect service quality. The quality of freight rail service should be based on shippers’ perception or the gap between shippers’ perceptions and expectations.

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Section: Rail Freight Service Quality Literaturementioning

confidence: 99%

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confidence: 99%

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confidence: 99%

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confidence: 99%

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An Exploratory Comparative Analysis of Northern Plains Grain Shippers’ Perspective on Whether Operational Performance Translates into Service Quality in Freight Rail Transportation

Ndembe

Vachal

2023

Transportation Research Record: Journal of the Transportation R

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“…The choice of transport mode and which one will be used depends on several factors (e.g. type of cargo, transport time, and cost) (Fulzele et al., 2019; Ndembe and Bitzan, 2022). In this regard, road transportation is one of the most commonly used modes of transport worldwide (Baygin et al., 2022).…”

Section: Introductionmentioning

confidence: 99%

Illuminating the road ahead: unlocking the potential of ICTs for enhanced data visibility in road transportation

Callefi,

Ganga,

Godinho Filho

et al. 2023

IMDS

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PurposeRoad freight transportation companies need to take advantage of information and communication technologies to develop capabilities. This study proposes a framework to guide road freight transportation companies to achieve data visibility in their operations by developing such capabilities. By proposing this framework, this research contributes to literature and practice, highlighting the capabilities and the respective supporting technologies for improved data visibility in road freight transportation.Design/methodology/approachA mixed-method approach is used to develop the framework, considering three methodological steps. In phase 1, the capabilities are identified in the literature and validated by experts. In phase 2, an empirical assessment of cause–effect relationships between capabilities is performed using a multiple case study and DEMATEL. Lastly, in phase 3, an analysis of the cause model and significant associations is conducted to enable the development of the framework. In addition, the proposed framework was validated by the experts interviewed.FindingsThe results provide a framework that explains the link between the technology-enabled data visibility capabilities in road freight transportation operations. In addition, a pathway was established that road freight transportation companies could follow to achieve data visibility in their operations by developing such capabilities.Originality/valueThis work develops the first framework that provides a path for data visibility in road freight transportation operations from adopting certain technologies. The insights are compelling for researchers and practitioners to optimize the decision-making process for adopting technologies and developing capabilities related to data visibility.

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A Stackelberg-based repurchase strategy for rail freight options (BRFO)

Shen,

Kuang,

Guo

2024

PLoS ONE

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This study presents a novel Buyback Rail Freight Option (BRFO), leveraging Stackelberg game theory to enhance the strategic management of rail freight transactions. By integrating traditional buyback theory with a multi-phase trigeminal tree pricing model and parameter identification through a nonparametric Ito stochastic method, the research addresses key challenges of information asymmetry and market uncertainty. The proposed methodology emphasizes dynamic pricing strategies and market adaptation, constructing a Nash equilibrium framework within railway freight pricing. The findings suggest significant strategic benefits for railway enterprises, positioning BRFO as a crucial tool for improving competitiveness in the face of alternative transport options.

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A shadow price approach examining service quality in a heavily captive U.S. freight transportation market: The case of grain transport

Cited by 3 publications

References 22 publications

An Exploratory Comparative Analysis of Northern Plains Grain Shippers’ Perspective on Whether Operational Performance Translates into Service Quality in Freight Rail Transportation

An Exploratory Comparative Analysis of Northern Plains Grain Shippers’ Perspective on Whether Operational Performance Translates into Service Quality in Freight Rail Transportation

Illuminating the road ahead: unlocking the potential of ICTs for enhanced data visibility in road transportation

A Stackelberg-based repurchase strategy for rail freight options (BRFO)

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