The Valuation of Time Slot Delivery

Purpose – The purpose of this thesis is to measure the valuation of consumers in terms of investing time, and investing money, of the willingness to pay (WTP) for time slot delivery of parcels. This service allows consumers to choose a predefined time slot for a parcel to be delivered and it could enable online retailers to establish an efficient and effective last-mile in the delivery process.

Design/methodology/approach – After a literature review, the thesis measures and analyses the WTP for this service based on empirical research. A conjoint analysis method is used to reveal the overall preference of the respondents for attribute levels price, time slot length and during which part of the day the delivery would take place (daytime or evening).

Findings – Based on the findings from the empirical research, important insights are derived that can guide online retailers in their decision to offer this service to consumers. One of the interesting findings is the relative importance of delivery fees. This is 68% when respondents make their choice between different time slots whereas the relative importance of the time slot length is only 22 %. This research shows that the valuation of time slot delivery service for different product groups is the same, but the willingness to pay decreases when the price of the product increases. This research reveals that consumers with a higher education are more willing to pay for time slot delivery service than lower educated consumers.

Originality/value – This research has investigated the time slot delivery service from the consumers’ perspective, providing valuable insights for online retailers and logistics service providers.

Limitation – The number of attribute cards presented to the respondents was limited to 5 cards per respondent reducing the generalization.

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