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EZpass case study

I need help with the case listed below and I have to answer the 2 following questions (using outside references) for a business research class.

1 - Evaluate the problem definition. Has the problem been defined adequately?

2 - What type of research design would you recommend for this project?

In the 1990's a task force was formed among executives of seven regional transportation agencies in NY - NJ area. The mission of the task force was to investigate the feasibility and desirability of adopting electronic toll collection (ETC) for the interregional roadways of the area. ETC is accomplished by providing commuters with small transceivers (tags) that emit a tuned radio signal. Receivers placed at toll booths are able to receive the radio signal and identify the commuter associated with the particular signal. Commuters establish ETC accounts that are debited for each use of a toll road or facility thus eliminating the need for the commuter to pay by cash or token. Because the radio signal can be read from a car in motion, ETC can reduce traffic jams at toll plazas by allowing tag holders to pass through at moderate speeds. At the time NY- NJ agencies were studying the service electronic toll collection was already being used successfully in Texas and Louisiana. Even though several of the agencies had individually considered implementing ETC they recognized that independent adoption would fall far short of the potential benefits achievable of an integrated interregional system.

The task force was most interested in identifying the ideal configuration of service attributes for each agency's commuters and determining how similar or different from these configurations might be across agencies. The task force identified a lengthy list of attributes that was ultimately culled to seven questions:

How many accounts are necessary and what statements will be received?

How and where does one pay for EZpass?

What lanes are available for use and how are they controlled?

Is the tag transferrable to other vehicles?

What is the price tag and possible service charge?

What is the price of the toll with an EZpass tag?

What are the other possible uses for the EZpass tag (airport parking, gasoline purchases)?

From a business researcher's perspective it also seemed important to assess commuter demand for the service. However, the task force was not convinced that it needed a projection of demand because it was committed to implementing ETC regardless of initial commuter acceptance. The task force considered its principal role to be investigating commuters' preferences for how the service should be configured ideally.

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EZpass case study and evaluation

**My answers are contained throughout this response, included after each question, as you posted them**

I need help with the case listed below and I have to answer the 2 following questions (using outside references) for a business research class.

1- Evaluate the problem definition. Has the problem been defined adequately?
Problem definition refers to how well the problem has been defined. In other words the decision problem that agencies face must be translated into a market research problem. This problem is expressed in the form of questions that define the information and how this information can be acquired. In short, the problem definition converts the business problem into a research problem.

In this case the business problem is to identify the ideal configuration of service attributes for each agency's commuters and how similar or different these might be across agencies. The problem definition is the list of seven questions that the task force has identified. The problem is to know the commuter's preferences for the services. From this perspective the problem has been defined adequately.

2 - What type of research design would you recommend for this project?
An exploratory research design is recommended for this project. An exploratory research will help identify the consumer choices for the different attributes that are reflected in the seven research questions. An exploratory research in this context will help to eliminate less preferred attributes and gain more insight into consumer preferences. We do not use the descriptive research in this context because we have been told that the task force feels that it does not need projections of demand and it is only interested in investigating commuters' preferences for how the service should be configured ideally.

The recommended design is that of focus group. The NY-NJ area where the electronic toll collection will be implemented ...

Solution Summary

EZpass case study is discussed very comprehensively in this explanation..

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