Abstract:
The purpose of this paper was study the service level which influenced the selection of shipping line service. The mathematical model to predict market share of the chosen shipping company was developed in order to improve the quality of service.The factors influencing the selection of shiping company were: freight charge, transit time, frequency of service and quality assurance.Stated preference technique was used to design the alternative choices un the questionnaires in order to study the behavior of customer's decision. The choice model was developed using binary logic type to forecast market share under various choice situations.As the result it was found that the important factors for the selection of shipping line were Freight charge, Transit time, and Frequency of service. The outcome coild forecase the market share under various choice situations of importance factor setting. The differentiation strategy selected to improve the quality of service instead of cost leadership straregy, gave the maximum profit the company.