Zip Car Case Study: Influencing customer behaviour.pptx

Zipcar case study is produced by Howard business school, and describe how Zip car has changed the service industry specially the taxi service industry. Focused on gap in service quality of the zip car.

1. Zipcar: Influencing Customer Behaviour Submitted to : Prof . Ankur Srivastava Submitted by : Group - 2 Chandresh Jindal (X05005) Ankur Patel (X05020) Rahevar Jaypalsinh (X05028) Sumit Kumar (X05033 )

2. Zipcar-Introduction Car sharing service started in Boston in 1999 Operated in 21 cities and owned more than 400 cars January 2005: 30000 registered members, 1500 new members joined monthly, new partnerships with universities Positioned its service as a low-cost alternative to car rental and ownership To use Zipcar’s services Join  Reserve  Unlock  Drive Reservations could be done through call or via online medium Members were provided with Zipcard that unlocked their preferred vehicle by swiping it over the transponder in the windshield while providing access to the keys locked inside

3. Product Information Zipcar differed from Rental Cars in the following ways:- Insurance, Gas, Parking is included in the usage fee of Zipcars Zipcar provided routine maintenance for the cars and members who washed their cars were reimbursed up to $15 and given one free hour of use No Age surcharge ZIPCAR BOSTON PLAN

4. Gaps in service quality Gap 1: Knowledge Gap - Understanding customer needs and expectations. Gap 2: Policy Gap - Aligning service design and policies with customer expectations. Gap 3: Delivery Gap - Ensuring consistency and reliability in service delivery. Gap 4: Communication Gap - Clear and transparent communication with customers. Word -of-mouth communications Personal needs Past experience Customer Expected service GAP 5 Perceived service Service delivery (including pre- and post-contacts) External communications to consumers GAP 4 Translation of perceptions into service quality specifications Management perceptions of consumer expectations GAP 2 Provider GAP 1 GAP 3

5. Zipcar's Service Characteristics of Service provided by Zipcar Intangible Nature: Zipcar provides on-demand access to vehicles, making its service intangible. Heterogeneity: While Zipcar aims for consistency, slight variations in vehicle condition or availability may occur. Simultaneous Production and Consumption: Zipcar's service is produced and consumed simultaneously, with members utilizing vehicles in real-time. Perishable: Unused reservation time is perishable, emphasizing the need for timely utilization. Critical Success Factors (CSFs) of Zipcar Convenience: Online reservation system offers flexibility and convenience. Affordability: Transparent pricing structure provides a cost-effective alternative. Technology Integration: Utilization of technology enhances the customer experience. Partnerships and Expansion: Collaborations increase accessibility and brand loyalty.

6. ZIPCAR: SERVICE CHARACTERISTICS Convenience : Zipcar ensures convenient access to vehicles across various locations, allowing members to book cars swiftly through online platforms or mobile apps, even at short notice. Flexibility: Members enjoy the flexibility to rent cars for short or extended periods, catering to diverse usage patterns and preferences. Affordability: Offering a cost-effective alternative to owning a car, Zipcar's fee structure, based on time and mileage, eliminates expenses related to maintenance, insurance, and parking. Vehicle Variety: With a wide selection ranging from compact to luxury cars and SUVs, Zipcar enables members to choose vehicles that suit their specific needs for each trip.

7. Easy Reservation System: Zipcar's user-friendly online reservation system allows members to quickly locate and reserve vehicles based on availability and personal preferences. Access Control: Utilizing the Zip card for access, Zipcar ensures secure and convenient entry to designated vehicles without the hassle of physical keys. Inclusive Services: Gas , insurance, and maintenance are included in usage fees, simplifying the rental process and enhancing convenience for members. ZIPCAR: SERVICE CHARACTERISTICS

8. ZIPCAR: MANAGING BEHAVIOUR Membership Requirements : Zipcar sets specific criteria for membership, such as age restrictions and driving history checks, to ensure that members are responsible and capable drivers. Usage Fees and Policies : The fee structure, including charges based on time and mileage, encourages responsible vehicle use. Policies regarding parking, cleanliness, and vehicle condition promote responsible behaviour. Reservation System : Requiring advance vehicle reservations helps Zipcar track usage patterns and manage fleet availability. This encourages members to plan their trips, reducing last-minute cancellations or no-shows. Feedback and Rating System : Zipcar may implement a feedback and rating system for members to review their experiences. Positive ratings reinforce responsible behaviour, while negative feedback can prompt corrective action. Security Measures : Incorporating technology like GPS tracking and immobilization systems ensures vehicle security and deters misuse, promoting responsible driving habits.

9. Adjustments for the enhancement of behaviour management Improved Communication : Proactive reminders, notifications, and educational materials regarding usage policies and responsible driving practices can improve member communication. Incentive Programs : Introducing rewards or discounts for safe driving habits and timely returns can motivate members to adhere to policies. Enhanced Monitoring and Enforcement : Stricter monitoring of vehicle usage and enforcement of penalties for violations can deter misconduct and ensure accountability. Customized Policies : Tailoring policies and fees based on individual member behavior can address specific challenges and encourage responsible conduct. Community Engagement : Creating opportunities for community engagement fosters a sense of ownership and accountability among members, encouraging adherence to Zipcar's standards.

10. Thank You