How How would would you char charact acteri erize ze the servi service ce Zipc Zipcar ar provid provides? es? With With whic which h companies or services does it compete? What role does it play in the competitive landscape? What are its critical success success factors? Zipcar is the world's largest American membership-based car sharing and car club service offering company providing car reservations to its m embers, billable by the hour or day. It is an alternative to traditional car rental and car ownership. The compan y shares Zipcars in different States of SA, !anada and ". The company also has presence on over #$%& college campuses at universities across orth America. (embers can reserve Zipcars online or by phone, #) hours a day, seven days a wee*. +eservations can be made minutes or up to a year in advance. Zipcar members have autom ated access to Zipcars using an access card called a Zipcard, whi ch wor*s with the car's technology t echnology to unloc* the door, where the *eys are already located inside. The cars are dropped off at the pic*up location after use. ith which companies or services does it compete/ Zipcar0s main competitor and rival was a Seattle-based company 1le2car. In the fall #%%3 Zipcar purchased 1le2car. In April April #%4%, Zipcar also bought 5ondon-based car-sharing firm Streetcar in its latest bid to e2pand across 6urope. +ental companies li*e 7ert8, 6nterprise +ent-A-!ar and -7aul are beginning to form competitive hourly rental programs, that car compete with Zipcar. I also found a competing company in 9! and :oston called (int !ar. Their web-site loo*s very similar to Zipcar and the service they provide is the same. hat role does it play on its competitive landscape/ In an interview of ;anuary 4$, #%%< Zipcar chief e2ecutive Scott =riffith while spea*ing with =lobe reporter icole !. ong mentioned> ith our success, we're going to see more entrants into the category. The one thing that really is a benefit from the merger of 1le2car and Zipcar is we're now at a company si8e of ?4%% million, which allows us to continue to invest in technology and brand mar*eting that I thin* will put us at the top of the...
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hat mechanisms does Zipcar have in place to manage customer behavior at the time of the caseB/ hat, specifically, specifically, are these mechanisms intended to accomplish/
hat can Zipcar do to encourage customers to return cars on-time/ hat are the pros and cons of each of these options for achieving the theoretical goal of 4%%C on-time returns/ hen discussing the pros and cons, consider the effects of these options on the customer with the car such as Sal 1ishmanB, the customer waiting for the car such as Anita "arrB, and the company ZipcarB. Dlease be comprehensiveE Zipcar has many possible options for trying to affect customers0 car return behavior. 9ou may have some e2amples from personal e2perience of how companies have tried to influence your co-production behavior that could be relevant here.B •
Alternative # Dros And !ons
Alternative $ Dros And !ons
Alternative ) Dros And !ons
Alternative F Dros and !ons
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7ow would you e2pect each of these options, if having been implemented at the time of the case, to influence Sal 1ishman0s decision whether to stay longer at his interview or return the car by $>$%pm/
SG5TIG
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If Sal had instead rented a car from a company such as 7ert8 or Alamo, for e2ample, would your answers to this Huestion be the same or different and why/ hat is your recommendation for how Zipcar should address the lateness issue/ hy do you feel your solution is the best overall/
1. Discuss the three roles of service customers (productive resources, contributors to service quality and satisfaction, and competitors) in the context of Zipcar. What roles are customers expected to play in co-creatin the Zipcar service ?
!. What mechanisms does Zipcar have in place to manae behavior" What actions are these mechanisms intended to in#uence"
1ew mechanisms that Zipcar has in place to influence customer behavior are> a) Fee Structure: They charged yearly membership fee to ensure a xed revenue from a customer. Variable fee as charged to in!uence need based reservation from customer. b) "eservation System: #ipcar vehicles can be boo$ed as early as a year in advance to minutes before the members need the vehicle. The boo$ing can be done by a simple call or through online reservation system. %ence the reservation system provided the !exibility to the customer. c) Sense of responsibility in customers: as in case& Sal Fishman considered it is important to inform #ipcar that he might need to extend his reservation time. Such a responsible behavior is rare to nd in customers. 't is #ipcar hich has ingrained in the mind of members& the importance of adhering to deadline of returning the vehicles to their designated par$ing areas.
+ecommended adustments> () Send the notication to customer an hour before his reservation expires. 'n case customer cannot conrm the return of vehicle& arrange a bac$up plan for customers ho are going to use that car. ) *enalty system in normal plans to in!uence the late returning behavior of customers. +) ,reate a plan under hich customer can boo$ the car for !exible hours and return deadline doesn-t need to be adhered strictly. dditional charges to boo$ under this plan should be ta$en.
ot needed> As customer is a co-producer in creation of a service, we understand that if customer fails in his roleJresponsibility, he affects () %is on experience ) /ther customer-s experience or +) ,ompany-s productivity In case of Zipcar, if a customer fails to return the vehicle to its designated place, he affects the ne2t customer as specified in case Anita *arr and Sal fishmanB. $. What ad%ustments, if any, &ould you recommend that the company ma'e to these mechanisms" hat is, ho& could Zipcar enhance customer participation" . hin' of a time that a service *rm successfully attempted to in#uence your actions before, after, or durin the service (other than increasin or decreasin your purchase behavior). a. +ame a service *rm that successfully ot you to do somethin, ta'e action, behave in certain &ay. b. rie#y describe the service. c. Which behavior &as the oraniation tryin to in#uence" d. What mechanism(s) &ere used in the attempt to in#uence your behavior" e. n your opinion, &hy &as the attempt successful"
/. hin' of a time that a service *rm &as not successful in attemptin to in#uence your behavior - here aain, +0 purchase behavior but other behavior before, after, or durin the service. a. +ame a service *rm that &as not successful in ettin you to do somethin. b. rie#y describe the service. c. Which behavior &as the oraniation tryin to in#uence" d. What mechanism(s) &ere used in the attempt to in#uence your behavior" e. n your opinion, &hy &as the attempt unsuccessful"
ummary - Zipcar •
Started in 0oston in (111& *rovides car sharing service
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*resent in ( cities 2 /ns more than 344 cars
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+4444 members groing at an avg. of (544 members per month
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/nline registration ith an initial fee of 65 and 6(44 refundable deposit
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nnual membership fee ranges from 654 to 654 depending on the plan type 7occasional driving& extra 54& extra 85) "eservations done on call or online
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'ncentive to customers for proper maintenance of cars 9embers are responsible for returning car to its designated par$ing location
ummary 2 3nita 4arr •
ives in ,ambridge
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0oo$ed a #ipcar V;
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She has to pic$ the car up at 43:44 pm at ,harles hotel
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She has to pic$ her sister up at 43:+4 pm and ta$e her to her debut performance in rhode island by 4=:44pm
ummary 2 al 5ishman •
nother customer of #ipcar
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%as hired the car nita is supposed to pic$ up at 43:44 pm
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%e pic$ed up the car at 4(:44pm for the intervie and as supposed to return the car at 4+:+4 pm The intervie as not going as per the designated schedule %e is in a dilemma hether to return the car or extend the reservation period
6ase problem •
;hether Sal should continue ith the intervie?
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;hether he should return the car?
6ase analysis al 5ishman7s point of vie& •
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%e is in the middle of an intervie "eservation period74+:+4pm) ill be violated if he continues ith the intervie %e tried to contact #ipcar and extend the reservation period but as interrupted %e also has the option of rescheduling the intervie and returning the car
3nita 4arr7s point of vie& She has to pic$ her sister up and drive her to "hode island along ith her $it for her debut performance •
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She as supposed to ta$e possession of the car at 43:44 pm ;hen she reached the ,harles hotel #ipcar par$ing space& there as no car She got anxious and called >ipcar
Zipcar7s point of vie& –
V; @etta @ericho& hired by 9r. Fishman as supposed to be returned by 4+:+4 pm
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The returened car as supposed to be ta$en over by 9s. Aarr
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#ipcar still has no idea about the series of incidents going on
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'n case nita doesn-t gets the car& there needs to be a service recovery done for 9s. Aar
6onceptual frame&or' understandin business process •
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*ossessionBprocessing C 't is actually about the services that are directed at physical possession #ipcar lies in the coBordinate of possession processing
olutions •
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Fisherman reschedules his intervie and returns the car to #ipcar and from #ipcar nita ta$es the possession of the car nita informs the unavailability of the car at the par$ing lot to #ipcar& #ipcar tries to contact Fisherman& if he is not going to return the car on time they ill provide nita ith service recovery •
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!nd solution is the optimal solution because both the customers &ill be satis*ed 3ssumption made 2 both the customers are equally important and intervie& for 5isherman is important to him
