Abstract
Intra-city delivery has developed rapidly along with the expansion of the logistics industry. Timely delivery is one of the main requirements of consumers and has become a major challenge to delivery service providers. To compensate for the adverse effects of delivery delays, platforms have launched delay compensation services for consumers who order. This study quantitatively evaluated consumer perception of the delay compensation service in intra-city deliveries using a choice experiment. We explored how different attributes of the delay compensation service plan affect consumer preference and their willingness to pay for the services. These service attributes are “delay probability display”, “compensation amount”, “compensation method”, “penalty method for riders”, and “one-time order price”. Using a multinomial logit model to analyze the questionnaire results, the respondents showed a positive preference for on-time delivery probability display, progressive compensation amount, and cash compensation. The results also show that the respondents opposed the penalty scheme where the riders would bear the compensation costs. Positive preference attributes are conducive to enhancing consumers’ willingness to order and pay for the program. Based on our findings and research conclusions, we proposed several recommendations to improve the delay compensation service program.
Highlights
Published: 16 March 2021With rapid developments in mobile Internet, the collaboration of e-commerce, media, and logistics platforms has brought tremendous changes to people’s shopping experience [1]
Using choice experiment to analyze consumer behavior, this study focuses on the delay compensation service plan in intra-city delivery
Based on the principle of Log Likelihood maximization and Akaike Information Criterion (AIC)/Bayesian Information Criterion (BIC) minimization, we compared the values of the two models
Summary
Published: 16 March 2021With rapid developments in mobile Internet, the collaboration of e-commerce, media, and logistics platforms has brought tremendous changes to people’s shopping experience [1]. Logistics companies have integrated technologies, such as the Internet of Things, cloud computing, and artificial intelligence, to develop new competitive advantages [2]. Given this industry environment, the intra-city delivery, a city-wide short-distance light logistics distribution, has emerged. As the Internet consumer market becomes more segmented, user needs have become more refined. The intra-city delivery can provide consumers with a more efficient and professional service and added convenience in the last mile delivery. In China, the rapid growth of the intra-city delivery market has propelled the creation and growth of numerous
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