CUSTOMERS’ PREFERENCE AND WILLINGNESS TO PAY FOR EXPRESS GOODS DELIVERY AT THE LAST MILE: A CONJOINT ANALYSIS METHOD

Abstract

This study was conducted to explore customers’ preference and willingness to pay for last-mile delivery service in the case of Express Goods (EG). A stated-preference dataset was collected from customers in Long Xuyen City, An Giang Province, and we used Conjoint Analysis Method to estimate important score of last-mile delivery’s attributes. The result shows that the most important attribute affecting customers’ preference is value of order attribute, followed by distance of delivery and speed of delivery attributes. In addition, the result also illustrates that customers are willing to pay for delivery fee from VND9,500 to 22,500 depending on value of order, distance and speed of delivery. Some implications are proposed in order for Logistics service providers and EG retailers to construct delivery policies and appropriate delivery fee to attract customers.