THE ROLE OF MARKETING IN SHIPPING LINE SERVICE IN THE PACIFIC NORTHWEST - CENTRAL ALASKA MARINE TRADE

The use of marketing by shipping lines engaged in liner service in the Pacific Northwest-Central Alaska marine trade was examined from the perspective of the marketing concept. The basic components evaluated were determination of customer needs by the lines, resultant customer perception of shipping line service, use of integrated marketing and profitability measures by the lines, and the operational and financial success of the lines. Data was collected from the shipping lines by personal interviews and secondary data and from the customers of the lines by written questionnaire. The customers evaluated twenty-five service attributes for two shipping lines, and also provided an evaluation of the line closest to their needs on each attribute and the importance of these attributes.; Of the three lines evaluated by the research, Totem Ocean Trailer Express (TOTE) was found to be the most highly developed in the areas of the determination of customer needs and the use of integrated marketing. The Alaska Service of Sea-Land was somewhat less developed in these same areas and Alaska Hydro-Train was the least developed from a marketing perspective. Customer perception of shipping line service, however, indicated that Sea-Land and Alaska Hydro-Train were most favorably rated, followed by TOTE, although the sample size for Alaska Hydro-Train was quite small. Within their respective target markets each line was perceived by customers as having competitive advantages. Sea-Land and Alaska Hydro-Train were found to have the strongest competitive advantages within these market segments. TOTE and Sea-Land used segmental profitability measures to a higher degree than Alaska Hydro-Train. TOTE achieved the most favorable growth in market share while Alaska Hydro-Train appeared to be the most profitable.; These results lend some support to a firm's use of the marketing concept, but the major anomaly found was that TOTE, although using the marketing concept to the greatest degree, did not achieve the highest level of either profitability or customer evaluation of service. Further research into the use of the marketing concept by firms appears to be required.