Question

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 interregional 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 speeds. 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 service 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 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 primary role to be investigating commuters’ preferences for how the service should be configured ideally. Questions

1. Evaluate the problem-definition process. Has the problem been defined adequately so that a relevant decision statement can be written?

2. What research questions might be tested?

3. Write a complete research proposal for E-ZPass.

Answer 1

In the brief synopsis of the E-ZPass case, the details of the case was not adequately defined. Of the 6 steps in the Problem-Definition Process, the following steps were/and were not used:

I. Understand the business situation-identify the key symptoms

a. The business situation was to investigate the feasibility and desirability of adopting a ETC for the interregional roadways of NY and NJ in order to alleviate traffic jams by eliminating the need for commuters to pay cash or token. The situation analysis that was conducted shows that Texas and Louisiana were already using ETC and that each state could not adopt the ETC independently, they would need to work together to maximize the efficiency of the ETC technology for an integrated interregional system.

II. Identify key problem(s) from symptoms

a. The case states that it did not need research to be done on the demand for the technology. So it is inconclusive in the case to identify the key problems from the symptoms. Had they done research regarding the demand of the ETC with the consumer they could have conducted interviews by using integrative techniques (.i.e asking the consumer probing questions like what value would the ETC have to you, where would you most likely use the ETC, who should have the ETC, when are you most likely to use the ETC, and why questions).

III. Write managerial decisions statement and corresponding research objectives

a. The only research that was done to aid their decision making was through using integrative techniques and narrowing down to the six following questions:

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

-How and where does one pay for E-Z-Pass?

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

-Is the tag transferable to other vehicles?

-What is the rice of the tag and possible service charge?

-What are other possible uses for the E-ZPass tag (airport, parking, gasoline purchases, and so forth)

It is unclear in the case how they narrowed it down to these 6 and what research they used.

IV. Determine the unit of analysis

a. The unit of analysis used was the ETC which was a transmitter that would be owned by the consumer. Each time the consumer passed through the toll booth the radio signal was picked up and transmitted to E-ZPass which in-turn would deduct from the consumers account the cost of the toll. The unit of analysis would gather information about the date, time, location, and cost of the toll that the ETC was used.

V. Determine the relevant variables

a. The ETC uses a continuous variable by counting how many times a car uses the ETC.

b. The ETC could use a classificatory variable and produce data as to where the ETC was used (i.e. Parking lots, highway, gas stations etc). This data would show where the ETC was most frequently used and when.

VI. Write research questions and/or research hypothesis

The case did not indicate that it wrote research questions or a research hypothesis. The end of the case it stated that the task force would consider consumers preferences.

2.

I believe the following questions should be tested:

-How does and where does one pay for E-ZPass?

-Is the tag transferrable to other vehicles?

These two variables will have to be tested to make sure the E-ZPass tag can be purchased or ordered easily. Additionally the E-ZPass researchers will have to test if the tag is transferable to other vehicles. They would want to test this because the tag is essentially supposed to generate revenue. The test will show that cars should have their own tags and should not be transferable. Meaning if you have two cars in your family you should have two tags. This is a method of managerial action standard, meaning that NY and NJ will have data that will help their decision to make each car have its own tag.

3.

I would recommend using a research design something similar to "An abbreviated version of a research proposal for the IRS”. I would use this design because it is set up in a way that outlines the methodology of the research method step by step. Additionally it is set up in a way that makes the researcher think critically about each stage of the process. Moreover I am suggesting this method because the case and its task force are only taking into consideration what they feel would be best for the based on the feasibility and desirability of adopting and ETC for interregional roadways between NY and NJ. It is not until the end of the case that the task force takes into consideration to investigate the commuter’s preference for how service should be configured.

Current Situation: Seven regional transportation agencies in NY and NJ area to investigate the feasibility and desirability of adopting ETC for interregional roadways of the area.

Purpose of the Research: 1. Investigate the feasibility of placing transmitters at tool booths and providing commuters with a tag that holds a radio signal, each time the commuter goes through a toll the radio wave connects with the transmitter and debits the toll amount from the commuters account.2.Decrease traffic jams by eliminating the need for commuters to pay cash or token to get through a toll.

Research Design: An internal interview process is suggested to have the following questions answered

Interview Questions for Internal Departments:

-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 are they controlled?

-Is the tag transferable to other vehicles?

-What is the price of the tag and possible service charges?

-What are other possible uses for the E-ZPass tag (airport parking, gasoline purchases, and so forth)?

Sample Design: Internal interviews for both NY and NJ affiliates

Data Gathering: Third Party consultants will conduct the interviews

Data Processing: Interview questions and answers will be analyzed and drafted in a report

Report Preparation: Written report will be provided that entails the findings and feasibility of the project as well as identifying the ideal configuration and attributes for both agencies commuters.

Budget and Timeline Schedule: It is unknown in this case.