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Segmenting industrial competitive markets: An example from air freight

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  • Tsai, Ming-Chih
  • Yang, Chih-Wen
  • Lee, Hsiao-Ching
  • Lien, Ching-Wei

Abstract

This paper applies a disaggregated approach to segment industrial markets under competitive structures taking the air-freight market for the high-technology product industry in Taiwan as a case study. Data from firms is used to examine the structure of the air freight industry and we find that carriers are clustered into two strategic groups, express and forwarder. Pricing is a leading strategy recognized by customers for forwarders, whereas service punctuality and freight security are the winning strategies for express. The high-tech freight market is classifiable by shipment destination and size.

Suggested Citation

  • Tsai, Ming-Chih & Yang, Chih-Wen & Lee, Hsiao-Ching & Lien, Ching-Wei, 2011. "Segmenting industrial competitive markets: An example from air freight," Journal of Air Transport Management, Elsevier, vol. 17(4), pages 211-214.
    • Handle: RePEc:eee:jaitra:v:17:y:2011:i:4:p:211-214
    DOI: 10.1016/j.jairtraman.2011.01.001
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    References listed on IDEAS

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    1. Man-Suk Oh & Jung Whan Choi & Dai-Gyoung Kim, 2003. "Bayesian inference and model selection in latent class logit models with parameter constraints: An application to market segmentation," Journal of Applied Statistics, Taylor & Francis Journals, vol. 30(2), pages 191-204.
    2. John Bowen & Thomas Leinbach, 2004. "Market Concentration In The Air Freight Forwarding Industry," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 95(2), pages 174-188, April.
    3. Wen, Chieh-Hua & Lai, Shan-Ching, 2010. "Latent class models of international air carrier choice," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 46(2), pages 211-221, March.
    4. Danielis, Romeo & Marcucci, Edoardo & Rotaris, Lucia, 2005. "Logistics managers' stated preferences for freight service attributes," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 41(3), pages 201-215, May.
    5. Frank Witlox & Els Vandaele, 2005. "Determining the Monetary Value of Quality Attributes in Freight Transportation Using a Stated Preference Approach," Transportation Planning and Technology, Taylor & Francis Journals, vol. 28(2), pages 77-92, April.
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    Cited by:

    1. Piendl, Raphael & Matteis, Tilman & Liedtke, Gernot, 2019. "A machine learning approach for the operationalization of latent classes in a discrete shipment size choice model," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 121(C), pages 149-161.

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