Scribd
Upload
423 views5 pages

CASE - E-ZPass

The task force formed by seven regional transportation agencies in New York and New Jersey investigated adopting electronic toll collection (ETC) using transceivers ("tags") on vehicles. They identified key attributes like payment methods, available lanes, tag costs and transferability. A videotaped demonstration and survey of over 3,000 commuters assessed preferences for different attribute configurations to guide system design. Analysis focused on attribute importance and questions like preferred payment and lane access options. The thorough problem definition and mixed research methods provided useful guidance for implementing ETC.

Uploaded by

ÁŘÅFÂŢ SAUDAGAR
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
423 views5 pages

CASE - E-ZPass

The task force formed by seven regional transportation agencies in New York and New Jersey investigated adopting electronic toll collection (ETC) using transceivers ("tags") on vehicles. They identified key attributes like payment methods, available lanes, tag costs and transferability. A videotaped demonstration and survey of over 3,000 commuters assessed preferences for different attribute configurations to guide system design. Analysis focused on attribute importance and questions like preferred payment and lane access options. The thorough problem definition and mixed research methods provided useful guidance for implementing ETC.

Uploaded by

ÁŘÅFÂŢ SAUDAGAR
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 5

TO: ARAFAT SAUDAGAR

CASE: E-ZPass
In the 1990s, a task force was formed among executives of seven regional
transportation agencies in the New York-New Jersey area. The mission of the task
force was to investigate the feasibility and desirability of adopting electronic toll
collection (ETC) for the inter-regional roadways of the area. Electronic toll collection
is accomplished by providing commuters with small transceivers (tags) that emit a
tuned radio signal. Receivers placed at tollbooths 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 speed.

At the time the New York and New Jersey 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 with an integrated interregional system.

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

 How many accounts are necessary and what statements will be received?
 How and where does one pay for E-ZPass?
 What lanes are available for use and how they are controlled?
 Is the tag transferable to other vehicles?
 What is the price of the tag and possible service charge?
 What are other possible uses for the E-ZPass tag (airport parking, gasoline
purchases, and so forth)?

From a researcher`s perspective, it also seemed importance to assess commuters


demand for the service. However, the task force was not convinced that is needed a
projection of demand, because it was committed to implementing ETC regardless of
initial commuter acceptance. The task force considered its primary role to be
investigating commuter`s preferences for how the service should be configured
ideally.

ANSWER

 Objective:

This case can be used to show how a good problem definition leads to a sound
research design.

Summary:
In the 1990s, a task force was formed by seven regional transportation agencies to
investigate the feasibility and desirability of electronic toll collection via small
transceivers called tags.

Questions:

1. Evaluate the problem-definition process. Has the problem been


defined adequately so that a relevant decision statement can be
written?

 Representatives from the Port Authority of New York and New Jersey (who
played a leadership role in the task force’s investigation) recognized that
setting priorities for service attributes and investigating level-preferences
within attributes were critical issues. They did a good job defining the problem
The process of defining the problem involves several interrelated steps.
1. Ascertain the decision maker’s objectives.
2. Understand the background of the problem.
3. Isolate and identify the problem, not the symptoms.
4. Determine the unit of analysis.
5. Determine the relevant variables.
6. State the research questions (hypotheses) and research objectives.
Clearly steps 1 and 2 were carefully considered. The problem was identified and
commuters were selected as the unit of analysis. The case indicates several well-
defined research questions.

2. What type of research design would you recommend for this


project?

 It became obvious to the task force and the research team that it would be
necessary somehow to “demonstrate” a nonexistent service. Some type of real-
time demonstration could possibly have been created at a central location
testing facility, but this would have been expensive to develop.
Instead, a unique medium for the demonstration was adopted. The high
penetration of VCRs in the New York/New Jersey metropolitan area suggested
that a videotaped demonstration might be used to describe the service to
commuters. It was proposed that a videotape be produced that linked the
service to a major (and dramatic) problem---traffic congestion---and then
demonstrated exactly how the service would operate. The resulting 11 minute
“infomercial” videotape becomes an important component of the research
process.
Sampling for the study was another logistical challenge. Each participating
agency desired a representative sample of their commuters be included in the
study. And they also wanted a representative sample of customers from each
of the facilities that they operated Sub-samples of commuters of each facility
needed to be included in the study so that preferences of each facility’s
commuters, ultimately, could be read at the facility level.
As might be imagined, not all agencies knew who their customers were at each
of their facilities. Ultimately, a sampling frame was established for each
agency by combining those commuters, if any, known to each agency (a
relatively small number) with commuters identified through random digit
dialing (RDD) within the area as daily users of one or more of the facilities
within the study.

Interview Sequence:

The sequence of the self-administered interview was clearly identified for


participants. They were first asked to view the videotape. Then they were ask
to compete the self-administered questionnaire and sort the full-profile
scenarios in order of preference. Finally, they were given the option of either
waiting to be contacted by the telephone interviewing staff or calling an 800
number at their convenience to complete the interview. A modest incentive
was offered to induce them to complete the process speedily. An in-tab sample
of 3,250 respondents was needed, and the targeted interviews were easily
completed within three weeks. Of the 6,500 commuters recruited and sent
kits, 3,369 were ultimately interviewed.

3. What research questions might be tested?


 Analysis and Findings:
The sponsoring agencies worked with the research team not only in specifying
the attributes but, more importantly, in discussing possible levels for each
attribute. The very act of defining combinations of attribute and attribute
levels for the research helped the task force members reconcile some of their
initial biases for or against particular levels of certain attributes. The analysis
used sophisticated methods that are beyond the scope of this case solution.
However, the relevant attribute importance is relevant here.

1. Importance of EZPass features Features Important rating?


2. What lanes are available for EZPass and how they are controlled?
3. Price of toll with EZPass?
4. How and where you pay for EZPass?
5. Price of Exposes tag and any service charges ?
6. Number of accounts necessary/number of statements received for multiple
facility usage ?
7. Is the EZPass tag transferable?
8. Other Potential uses for the EZPass tag?

You might also like