EVALUATING MARKETING STRATEGIES FOR THE INTERMODAL FIRM

The Intermodal Strategy Evaluation (ISE) Model is a potential decision support tool for developing marketing strategies for intermodal carriers. The model predicts the motor carrier and shipper response to an intermodal company's marketing initiatives and indicates the circumstances under which cooperative and competitive strategies are advantageous to each party. ISE defines the market to be a traffic lane. Profitability is evaluated for round trips and for the lane as a whole, not on a per box basis. Customers are modeled as being either "naive" (truck is better than intermodal) or "sophisticated" (carrier choice is based on total logistics costs). The user provides base case information on customer characteristics, traffic quantities and prices. This information is used in a linear optimization model that incorporates truck and intermodal costs, to predict the trucking and intermodal companies' behavior and estimate their profits. The model is demonstrated for the Interstate 95 corridor. The intermodal marketing strategies evaluated include 1) cutting backhaul rates, 2) cooperating with the trucking firm, and 3) educating customers to consider their total logistics cost in selecting a carrier. These marketing strategies are examined in the current environment and in a hypothetical environment where fuel prices are doubled. The model results demonstrate that intermodal profitability improves by shifting customers from naive to sophisticated and, in most cases, from higher fuel prices. The most attractive marketing strategy depends on the circumstances in the individual corridor.

• Record URL:
  • https://catalog.hathitrust.org/Record/001070572/Home
• Availability:
  • Find a library where document is available. Order URL: http://worldcat.org/issn/10461469
• Corporate Authors:

  Transportation Research Forum

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  Transportation Research Forum

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• Authors:
  • Lawrence, M B
  • SHUGHART, L A
• Publication Date: 1995

Language

• English

Media Info

• Features: References; Tables;
• Pagination: p. 44-58
• Serial:
  • Journal of the Transportation Research Forum
  • Volume: 34
  • Issue Number: 2
  • Publisher: Transportation Research Forum
  • ISSN: 1046-1469
  • Serial URL: https://trforum.org/journal-of-the-trf/
• Publication flags:

  Open Access (libre)

Subject/Index Terms

• TRT Terms: Alternatives analysis; Computer models; Costs; Customers; Education; Evaluation; Logistics; Marketing; Motor carriers; Profitability; Strategic planning
• Old TRIS Terms: Intermodal carriers
• Subject Areas: Finance; Freight Transportation; Highways; Motor Carriers; Planning and Forecasting; Railroads; Society; I72: Traffic and Transport Planning;

Filing Info

• Accession Number: 00680827
• Record Type: Publication
• Files: TRIS
• Created Date: Jun 20 1995 12:00AM