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Estimating the Influence of Service Quality on Transportation Demand
Author(s) -
Johnson Marc A.
Publication year - 1976
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.2307/1239266
Subject(s) - quality (philosophy) , service quality , service (business) , elevator , estimation , econometrics , price elasticity of demand , empirical research , microeconomics , economics , business , marketing , statistics , mathematics , engineering , philosophy , management , structural engineering , epistemology
Following a theoretical justification for considering service quality as a demand determinant based upon conventional derived demand analysis, an empirical procedure is developed for estimating the response of demand and modal selection probability to changes in service quality. The estimation technique suggested is similar to that used in the measurement of hedonic price indices, permitting a subjective evaluation of quality factors by shipping managers. An empirical demonstration suggests that transport demand responsiveness to transport service quality is inelastic for country grain elevators.