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Case study
Publication date: 1 November 2018

Ila Manuj, Markus Gerschberger and Patrick Freinberger

Steel Corp has a large production capacity but a shrinking steel market in Europe. Reaching growing markets like China and U.A.E will be important to sustaining and growing…

Abstract

Steel Corp has a large production capacity but a shrinking steel market in Europe. Reaching growing markets like China and U.A.E will be important to sustaining and growing revenue but is tough due to higher transportation costs. In this case, users must identify and use logistics data; logistics customer segmentation and related cost analysis.

Details

Council of Supply Chain Management Professionals Cases, vol. no.
Type: Case Study
ISSN: 2631-598X
Published by: Council for Supply Chain Management Professionals

Keywords

Case study
Publication date: 3 July 2017

Laurie L. Levesque, Kuo-Ting Hung and Hasan Arslan

This case presents a problem with competing in the Chinese market faced by Jeff Hotchkiss in early 2000s, then President of the Assembly Test Division (ATD) at Teradyne. Teradyne…

Abstract

Synopsis

This case presents a problem with competing in the Chinese market faced by Jeff Hotchkiss in early 2000s, then President of the Assembly Test Division (ATD) at Teradyne. Teradyne is the world’s largest producer of automatic test equipment for electronic assembly on production lines. Hotchkiss needed to find a solution to prevent ATD from continued loss of market share in equipment sales and loss of service revenue in China. Various factors to be considered include customer differentiation and service supply chain configuration.

Research methodology

This case is a field researched case. The research team met with Teradyne’s division president and top management team, and was given access to the documents including customer feedback.

Relevant courses and levels

Graduate or undergraduate: operations management, supply chain management.

Details

The CASE Journal, vol. 13 no. 4
Type: Case Study
ISSN: 1544-9106

Keywords

Article
Publication date: 1 March 2004

Photis M. Panayides

The marketing literature has emphasised the importance of marketing orientation as a means of achieving organisational objectives. A number of studies that have examined the…

3138

Abstract

The marketing literature has emphasised the importance of marketing orientation as a means of achieving organisational objectives. A number of studies that have examined the marketing orientation and business performance relationship have found mixed results culminating in inconclusive evidence. This paper examines the marketing practices and investigates the marketing strategy‐business performance relationship across logistics companies in the Asia‐Pacific region. The exploratory analysis suggests a positive relationship between market segmentation and performance. Differentiation and market orientation do not seem to be significantly associated with improved performance, although cross‐functional customer focus shows a significant relationship. Further discriminant analysis of the significant predictor variables suggests that two variables, viz. market segmentation and positioning, and cross‐functional customer focus are useful in differentiating between high and low performers. Managerial and further research implications for this increasingly important industry in the Asia‐Pacific region are discussed.

Details

Asia Pacific Journal of Marketing and Logistics, vol. 16 no. 1
Type: Research Article
ISSN: 1355-5855

Keywords

Article
Publication date: 25 May 2010

Michael S. Garver, Zachary Williams and Stephen A. LeMay

Traditional methods of capturing and determining logistics attribute importance have serious research limitations. The purpose of this paper is to introduce maximum difference…

2656

Abstract

Purpose

Traditional methods of capturing and determining logistics attribute importance have serious research limitations. The purpose of this paper is to introduce maximum difference (MD) scaling as a new research methodology that will improve validity in measuring logistics attribute importance, overcoming many of the limitations associated with traditional methods. In addition, this new research method will allow logistics researchers to identify meaningful need‐based segments, an important goal of logistics research.

Design/methodology/approach

This paper provides an overview of MD scaling along with important research advantages, limitations, and practical applications. Additionally, a detailed research process is put forth so that this technique can be implemented by logistics researchers. Finally, an application of this technique is presented to illustrate the research method.

Findings

The importance of truck driver satisfaction attributes was analyzed using bivariate correlation analysis as well as MD scaling analysis. The two sets of results are compared and contrasted. The resulting rank order of attributes is very different and MD scaling results are shown to possess important advantages. As a result of this analysis, MD scaling analysis allows for meaningful, need‐based segmentation analysis, resulting in two unique need‐based driver segments.

Practical implications

From a practitioner viewpoint, knowing which attributes are most important will help in investing scarce resources to improve decision making and raise a firm's ROI. Although a number of relevant applications exist, the most important may include examining: the importance of customer service attributes; the importance of logistics service quality attributes; and the importance of customer satisfaction attributes.

Originality/value

MD scaling is a relatively new research technique, a technique that has yet to be utilized or even explored in existing logistics and supply chain literature. Yet, evidence is mounting in other fields that suggest this technique has many important and unique advantages. This paper is the first overview, discussion, and application of this technique for logistics and supply chain management and creates a strong foundation for implementing MD scaling in future logistics and supply chain management research.

Details

The International Journal of Logistics Management, vol. 21 no. 1
Type: Research Article
ISSN: 0957-4093

Keywords

Article
Publication date: 1 July 1990

Arun Sharma and Douglas M. Lambert

Customer service represents a significantopportunity for segmenting markets. This articlereviews the importance of customer service andthe conceptual issues associated with…

1226

Abstract

Customer service represents a significant opportunity for segmenting markets. This article reviews the importance of customer service and the conceptual issues associated with segmenting industrial markets on the basis of customer service. A methodology is presented which can be used by managers to classify a market into segments with different customer service needs. Empirical results from a high‐technology industry are also presented. The article emphasises the need to recognise the differing customer service requirements of segments of customers when establishing priorities for customer service expenditures.

Details

International Journal of Physical Distribution & Logistics Management, vol. 20 no. 7
Type: Research Article
ISSN: 0960-0035

Keywords

Article
Publication date: 1 December 1997

James A. Eckert and Thomas J. Goldsby

Conceptualizes a model of customer service‐based segmentation derived from the elaboration likelihood model (ELM). Logistics organizations are utilizing improved customer service…

4242

Abstract

Conceptualizes a model of customer service‐based segmentation derived from the elaboration likelihood model (ELM). Logistics organizations are utilizing improved customer service to achieve competitive advantage. However, these firms must segment customers to avoid escalating their service platform to those unlikely to provide adequate return. Based on ELM‐established relationships, proposes the following model: buying firms that demonstrate a high level of involvement with a product offering and show high organizational visioning are more likely to give ample consideration to the service improvements in their purchase decisions. In turn, these customers’ commitment to that product offering will be persistent and resistant to change ‐ leading to improved buyer loyalty.

Details

International Journal of Physical Distribution & Logistics Management, vol. 27 no. 9/10
Type: Research Article
ISSN: 0960-0035

Keywords

Article
Publication date: 1 February 1990

Gordon Wills, Sherril H. Kennedy, John Cheese and Angela Rushton

To achieve a full understanding of the role ofmarketing from plan to profit requires a knowledgeof the basic building blocks. This textbookintroduces the key concepts in the art…

16054

Abstract

To achieve a full understanding of the role of marketing from plan to profit requires a knowledge of the basic building blocks. This textbook introduces the key concepts in the art or science of marketing to practising managers. Understanding your customers and consumers, the 4 Ps (Product, Place, Price and Promotion) provides the basic tools for effective marketing. Deploying your resources and informing your managerial decision making is dealt with in Unit VII introducing marketing intelligence, competition, budgeting and organisational issues. The logical conclusion of this effort is achieving sales and the particular techniques involved are explored in the final section.

Details

Management Decision, vol. 28 no. 2
Type: Research Article
ISSN: 0025-1747

Keywords

Article
Publication date: 1 December 1994

Paul R. Murphy and James M. Daley

Most firms have traditionally offered one level of logistics service toall customers. This often results in some customer groups receiving moreservice than necessary, while other…

7132

Abstract

Most firms have traditionally offered one level of logistics service to all customers. This often results in some customer groups receiving more service than necessary, while other groups receive less service than necessary. The emerging concept of logistical segmentation suggests that companies can structure their logistical offerings to meet the needs and requirements of different customer groups. Uses the “nested” approach from industrial marketing to illustrate an application of logistical segmentation. More specifically, examines the importance of selection factors in modal choice for international sourcing according to geographic location, primary mode of transport, and job responsibilities. Uses empirical data from a group of regional purchasing managers to facilitate understanding of the nested approach.

Details

International Journal of Physical Distribution & Logistics Management, vol. 24 no. 10
Type: Research Article
ISSN: 0960-0035

Keywords

Case study
Publication date: 1 January 2011

Jochen Wirtz, Indranil Sen and Sanjay Singh

Marketing; customer segmentation; operations and logistics.

Abstract

Subject area

Marketing; customer segmentation; operations and logistics.

Study level/applicability

Undergraduate business and management students, MBA/MA level application for international marketing modules incorporating customer segmentation and customer asset management.

Case overview

DHL, the international air express and logistics company, serves a wide range of customers, from global enterprises with sophisticated and high volume supply-chain solutions shipping anything from spare parts to documents, to the occasional customer who ships the odd one or two documents a year. To be able to effectively manage such a diverse customer base, DHL implemented a sophisticated customer segmentation cum loyalty management system. The focus of this system is to assess the profitability from its customers, reduce customer churn, and increase DHL's share of shipments.

Expected learning outcomes

Case teaching objectives: to demonstrate the concept of customer segmentation with loyalty management as a total system in a logistics company setting, and to evaluate appropriateness of the classification; to utilize the concept of service tier model within the company's current operations, and to evaluate the effectiveness of the model; to analyze the implementation of the customer segmentation cum loyalty management system and development of the necessary rules required to classify the various accounts into categories; to highlight the possible challenges arising from the implementation of customer segmentation cum loyalty management system, and to discuss possible methods of resolution.

Supplementary materials

Teaching note.

Details

Emerald Emerging Markets Case Studies, vol. 1 no. 1
Type: Case Study
ISSN: 2045-0621

Keywords

Article
Publication date: 9 March 2012

Michael S. Garver, Zachary Williams, G. Stephen Taylor and William R. Wynne

Much of the research conducted in logistics/SCM has focused on satisfaction/retention of customers. This has left a critical gap for managers: before customers can be satisfied…

2264

Abstract

Purpose

Much of the research conducted in logistics/SCM has focused on satisfaction/retention of customers. This has left a critical gap for managers: before customers can be satisfied and ultimately retained, a purchase choice of logistics services has to occur. To date, very little research has addressed how logistics customers make purchase choice decisions about logistics services. The purpose of this paper, using logistics research methods, is to introduce adaptive choice modelling (ACM) to address this gap and put forth a research method that is useful for academic researchers and logistics/SCM managers.

Design/methodology/approach

This paper provides an overview of ACM, along with a discussion of its important research advantages, limitations, and practical applications. Additionally, an empirical demonstration of this research technique is provided to illustrate how academic researchers and logistics managers can use ACM to better understand the decision‐making process of customers when selecting logistics services.

Findings

In order to demonstrate this research technique, a research project was designed and implemented that analyzed the choice process of consumers selecting parcel carriers to ship a textbook. The results show that price, speed of delivery, and tracking are the three most important variables in the selection decision. The results also show that consumers are not homogeneous, but can be divided into five distinct need‐based segments. Recognizing and understanding the nature of these segments should help managers better meet the needs of parcel shippers.

Research limitations/implications

The main research limitation with this study is that it is based on a convenience sample; thus future research will need to replicate this study to confirm the research findings. However, the ultimate purpose of the study is to present a new research method and discuss how to apply this method, so that logistics/SCM practitioners and academic researchers can better understand customers of logistics/SCM services. Thus, while the nature of the sample is a limitation, it should be viewed in this context.

Originality/value

While conjoint analysis has existed for decades, this technique has rarely been implemented by logistics/SCM researchers and practitioners. Instead, logistics/SCM researchers and practitioners have focused more on retention methods and have virtually ignored modelling the actual purchase choice of logistics/SCM services. New advancements in conjoint analysis, specifically the ACM approach, have many important and unique advantages and applications for logistics/SCM researchers and practitioners. ACM has not been used in a logistics/SCM context.

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