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Zipcar Case Study

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A classic case study about Zipcar Services with the complete character analysis of people involved, case solutions and facts.

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Page 1: Zipcar Case Study
Page 2: Zipcar Case Study

Car Sharing Service

Started in 1999

Expanded to 21 cities till 2004

30000 Registered Members

400 cars till 2004

Tie Ups with Universities

ZIPCAR: IN A ZIP

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Step 1. Join

Step 2. Reserve

Step 3: Unlock

Step 4. Drive!

HOW TO USE ZIPCAR’S SERVICES

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Initial Fee: $25 for Checking Driver’s License + $100 Refundable Deposit

Annual Membership Fee: $50-$250

Free 125 Miles/Reservations, $0.20/Mile Beyond That

Incentive for Members Washing The Cars

SERVICE CHARGES

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COMPARISON WITH CAR RENTAL

Car Rental

Daily Rate: $43.00 (No hourly options)Gas Charges: $10.00Insurance Waiver: $21.9521-25 Age Surcharge: $30.50Parking: $8.00Additional Fees: $4.00Total: $86.95

Zipcar

Daily Rate: $60.00 (Or by the hour for $8.50)Gas: $0Insurance: $021-25 Age Surcharge: $0Parking: $0Total= $60.00

You Save $26/Day

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COMPARISON TO CAR OWNERSHIP

Owned Car

Car Payment: $315Finance Charges: $62Insurance: $134Gas: $61Maintenance: $76Parking: $175Total: $843/Month

ZipcarIf You Drive A Lot: $290/MonthIf You Drive A Fair Amount: $153/MonthIf You Don’t Drive Much: $34/Month

You Save Hundreds Each Month, You Pay Only What You Use

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RELATIONSHIP MARKETING

Building Financial Bonds

Building Social Bonds

Building Structural Bonds

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INTRODUCTION TO THE CASE

Anita Karr resident of Cambridge (U.S.A)

Anita Karr resident of Cambridge(U.S.A)

Reserved a VW Jetta Jericho from Zip car at

4:00 pm

Needs to go to Boston by 6:00pm

To attend her sisters performance

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INTRODUCTION TO THE CASE

Sal Fishman attending an interview in Boston

Reserved the car from zip car for the interview

Expected to return the car by 3:30 pm which Anita Karr was

scheduled to pick up by 4:00 pm

But his interview got delayed beyond 3:30 pm

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THE PROBLEM

Fishman found himself in a difficult position position regarding the car.

Fishman excused himself from his interviewers to call Zip car but before Zip car could pick up the line Fishman hung up .

Karr was anxious when she saw no car parked at the parking space at the Charles Hotel.

WHAT SHOULD FISHMAN DO?Should he stay or Should he go?

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INFLUENCING CUSTOMER BEHAVIOUR

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Anita KarrSal FishmanVolkswagen JettaZipcar

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ANITA KARR

Emotional Caring Values Relationships

Believes in Planning

Organized Person

Platinum Customer

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Sal Fishman

Loves adventure

Energetic

Responsible

Punctual

15

GOLD Customer

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The Middle Segment Sedan from Volkswagen

Positioned as a car everyonr desries

The other cars from Volkswagen are

Vento-Lower segment

Passat-Higher Segment

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Positioning of Zipcar

Its Not a Rental Service but Ownership

Covers Gas, Insurance, Parking fees

A Brand to Rely On

Can own Any Segment Car Anytime..!!

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Solutions to the case

Auto call Back Systems ½ hours before

Numbers exchange system

Static & Dynamic Pricing

IVR System for Problems

Minimum 2 cars

Mobile app to track cars

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Zipcar = Unpleasant

Absolutely Horrifying Experience

You Will Be Dissatisfied

Don’t Waste Your Time Or

Money

Do Not Rent From

Zipcar

Beyond Terrible Customer Service

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Transactional Surveys

Employee Surveys

Customer Complaint Capture

Customer Advisory Panels

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Enhancing Elements

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Door To Door Service

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Chauffer Driven ZipCar

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Trips for Special Members

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Vacation Trips Outside United States

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Airport & Railway Service

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Superiority Elements

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Customization Of Cars

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Pet Space

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Zipcar Driver Training Center

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Women Safety System

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Multiple Members Zipcard Access

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“It's a relief not to have a car anymore.But it's also a relief to know if we need

one, it's there.''

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Functional

RisksPhysical Risks

Financial RisksTemporal Risks

Psychological Risks

Social Risks

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The management

team

Nitesh

Praveen

Piyush

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