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Purpose – In this chapter, the potential of Milk Run logistics, a method for consolidating freight, is analysed. Milk Run logistics provides a host of possibilities for consolidating freight transport activities and thus using transport capacity efficiently. It utilizes one vehicle to conduct several pick-ups/deliveries in a round trip, which means that the pick-up/delivery points should be located in a limited area which can be covered in a one-day trip.

Findings – Milk Run logistics seems highly beneficial in congested urban environments in developed and developing countries although it may also work in other areas. Furthermore, it can be linked to long-distance logistics, by rail for example, in the national and world-wide network of large companies.

Application – Examples for three automotive companies are given: Toyota with its logistic concept for the Bangkok region, Webasto, a supplier of hardtops and other car parts, and Audi, a daughter company of Volkswagen. All of them have introduced green logistics concepts including Milk Runs, which help to reduce CO2, waste material and – last but not least – costs.

Implications – The chapter concludes with indicating the high potential of Milk Run logistics to China and its rapidly developing automotive industry.

Purpose — Automated fare collection systems implemented in public transportation systems in the last decade have provided a massive, continuous and low-cost source of reliable travel information. A direct and useful application of these data is the estimation of highly representative, although not bias-free, origin-destination (OD) matrices.

Methodology/approach — We discuss several issues with current OD matrix estimation methodologies, such as fare evasion and group travel, and their derived biases, specifically focusing on the Santiago (Chile) case. We also propose and apply two methods of validation: endogenous and exogenous validation. We elaborate on some methodological improvements that could be implemented to upgrade the activity estimation mechanics.

Findings — Several sources of bias in the estimation of OD matrix estimation from passive data are pointed and some solutions proposed. We apply improvements to existing methodologies and increase the success rate of trip estimations.

Practical implications — The reliable estimation of public transport OD matrices from passive data results in a valuable planning tool for both transit authorities and operators, much more representative and with less errors and biases that conventional data collecting techniques.

Originality/value of paper — This paper is one of the first works to deal with the subject.

Purpose — Fare validation data from transit smart card automatic fare collection (AFC) systems have properties that align with the direction of large-scale mobility surveys and the evermore demanding data needs of the transit industry. In addition to applications in transit planning and service monitoring, travel patterns and behaviour can effectively be studied by exploiting the continuous stream of observations from the same card. The paper proposes a methodology to enrich fare validation data in order to generate information that is hard to obtain with traditional travel surveys.

Methodology/approach — The methodology aims to synthesize individual-level attributes by summarizing multi-day validation records from each card. These new dimensions are then transposed to various levels of aggregation and studied simultaneously in multivariate analysis. The methodology can also be applied to synthesize other multi-day attributes and is transferable to other modes and other travel behaviour studies.

Findings — Results show that validation data can effectively be used to measure the distribution of travel patterns in time and space as well as the variation of those phenomena over time. The paper provides several examples based on millions of validation records from the metro sub-network of Montréal, along with interpretations and some practical implications.

Research limitations/implications — Limitations and bias regarding the data and the methodology as well as the strategies to handle them are discussed within the context of passive travel survey and travel behaviour studies.

Practical implications — Practitioners in transit planning, operations, marketing and modelling can benefit from studying the increasingly accessible and massive smart card datasets through a deeper understanding of multi-day travel patterns and behaviour of transit users.

Originality/value — This paper outlines a data modelling approach and simple-to-implement methodology which exploit the multi-day property of fare validation data from a smart card AFC. The concept of multi-day attributes is introduced. The analyses show that the approach is effective for extracting information on travel behaviour and its variation which would otherwise be hard to obtain through traditional travel surveys, opening up another dimension of this data source for practitioners and transport modellers alike.

Smart card-based E-payment systems are receiving increasing attention as the number of implementations is witnessed on the rise globally. Understanding of user adoption behavior of E-payment systems that employ smart card technology becomes a research area that is of particular value and interest to both IS researchers and professionals. However, research interest focuses mostly on why a smart card-based E-payment system results in a failure or how the system could have grown into a success. This signals the fact that researchers have not had much opportunity to critically review a smart card-based E-payment system that has gained wide support and overcome the hurdle of critical mass adoption. The Octopus in Hong Kong has provided a rare opportunity for investigating smart card-based E-payment system because of its unprecedented success. This research seeks to thoroughly analyze the Octopus from technology adoption behavior perspectives.

Cultural impacts on adoption behavior are one of the key areas that this research posits to investigate. Since the present research is conducted in Hong Kong where a majority of population is Chinese ethnicity and yet is westernized in a number of aspects, assuming that users in Hong Kong are characterized by eastern or western culture is less useful. Explicit cultural characteristics at individual level are tapped into here instead of applying generalization of cultural beliefs to users to more accurately reflect cultural bias. In this vein, the technology acceptance model (TAM) is adapted, extended, and tested for its applicability cross-culturally in Hong Kong on the Octopus. Four cultural dimensions developed by Hofstede are included in this study, namely uncertainty avoidance, masculinity, individualism, and Confucian Dynamism (long-term orientation), to explore their influence on usage behavior through the mediation of perceived usefulness.

TAM is also integrated with the innovation diffusion theory (IDT) to borrow two constructs in relation to innovative characteristics, namely relative advantage and compatibility, in order to enhance the explanatory power of the proposed research model. Besides, the normative accountability of the research model is strengthened by embracing two social influences, namely subjective norm and image. As the last antecedent to perceived usefulness, prior experience serves to bring in the time variation factor to allow level of prior experience to exert both direct and moderating effects on perceived usefulness.

The resulting research model is analyzed by partial least squares (PLS)-based Structural Equation Modeling (SEM) approach. The research findings reveal that all cultural dimensions demonstrate direct effect on perceived usefulness though the influence of uncertainty avoidance is found marginally significant. Other constructs on innovative characteristics and social influences are validated to be significant as hypothesized. Prior experience does indeed significantly moderate the two influences that perceived usefulness receives from relative advantage and compatibility, respectively. The research model has demonstrated convincing explanatory power and so may be employed for further studies in other contexts. In particular, cultural effects play a key role in contributing to the uniqueness of the model, enabling it to be an effective tool to help critically understand increasingly internationalized IS system development and implementation efforts. This research also suggests several practical implications in view of the findings that could better inform managerial decisions for designing, implementing, or promoting smart card-based E-payment system.

After more than three decades of research and legal cases pursued by the European Commission (EC) and national regulators, interchange fees for four-party consumer card transactions are capped on December 9, 2015 across the European Union (EU). Since then, the development of card scheme fees has been a raising concern for merchants. Due to their nature, these fees have not been dealt with in research or covered by the Interchange Fee Regulation (IFR). This chapter aims to assess the recent development of card scheme fees within four-party card payment networks by relying on survey data obtained from 104 merchants across the EU. Findings show that for half of the merchant population card scheme fees have increased since the regulation. Further concerns related to transparency of fees, pass-through of savings to retailers and subsequently consumers, and the development of commercial cards are discussed. In light of the EC's scheduled review of the impacts of the policy intervention in 2019 (Article 17 of the IFR), this chapter evaluates alternative arrangements for the setting of card scheme fees with a focus on the legal basis for a potential regulation. Findings shall provide a ground for further interaction between academics, practitioners, and policymakers.