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Hertz - Service Quality model - oral presentation 23-08-13
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Hertz - Service Quality model - oral presentation 23-08-13

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Oral group presentation about Hertz car rental and the Service Quality Model …

Oral group presentation about Hertz car rental and the Service Quality Model
MA Marketing
Date: 23-08-13

Published in Business , Education
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  • 1. Hertz car rental & Service Quality •Audrey Jaspart
  • 2. PLAN 1. Hertz Corporation  Presentation of the car rental company  Hertz car rental blueprint framework 2. Investigation context  Interviewers  Significant trends in the car rental industry in Ireland 3. Hertz - Service Quality Gaps a. GAP 1: Knowledge Gap b. GAP 4: Communication Gap c. GAP 5: Perceptions Gap d. GAP 7: Service Gap 4. Conclusion
  • 3. Hertz Corporation Presentation
  • 4.  Hertz presentation  The Hertz Corporation (also called Hertz) is a subsidiary of Hertz Global Holdings Inc Hertz Report 2012
  • 5.  Hertz presentation  The company is engaged in car rental and equipment rental business  There are two main types of customers: - Customers who rent for leisure (45%) - Customers who rent for business (55%)  The rental location is also a key point of Hertz: airport and off-airport
  • 6. Hertz agencies localization in Ireland
  • 7.  Hertz and the use of new technologies • Major player in the use of new technologies • The company has set up terminals reservation, e-receipts, Smartphone applications...
  • 8. Hertz car rental blueprint framework
  • 9. Investigation context
  • 10.  Interviewers Mrs. Hayley Murphy, HR Consultant, Hertz Europe Service Centre Mr. Joffrey Kropfinger, Hertz Sale Representative, Ireland Two Hertz agencies in Dublin (Ireland): •Hertz - Dublin Airport •Hertz - 151-157 South Circular Road, Dublin
  • 11. Significant trends in the car rental industry in Ireland • Car rental market remains extremely fragmented in Ireland having 64% value share in 2012 • Hertz Ireland and AVIS Ireland both have the largest value shares at 10%. • BUDGET (company) car rental Ireland also had a good market share of 8%.
  • 12. Hertz Service Quality Gaps
  • 13. Customer experience relative to expectations 1. Knowledge Gap 2. Standards Gap 3. Delivery Gap 5. Perceptions Gap 7. Service Gap Customer needs and expectations 6. Interpretation Gap 4. Communication Gap MANAGEMENT CUSTOMER 4. Customer perceptions of service execution Management definition of these needs Translation into design/delivery specs Execution of design/delivery specs Advertising and sales promises Customer interpretation of communications Service Quality Gaps
  • 14. Knowledge Gap
  • 15.  Key factors and main goals  We can identify 4 key factors responsible for provider gap 1 : => Inadequate marketing research orientation => Lack of upward communication => Insufficient relationship focus => Inadequate service recovery  The main goals of the Gap 1 are : => Understand customer expectations => Improve communication between frontline staff and management => Turn information and insights into action
  • 16.  First issue for the knowledge gap Issue: Lack of upward communication • Managers and employees don’t communicate about customer expectations • Too many layers between contact personnel and top management • Lack of interaction between management and customers Recommendations for the lack of upward communication  Executive and management listening to customers  Executive listening approaches to employees  Employee suggestions
  • 17.  Second issue for the knowledge gap Issue: Inadequate service recovery • Recurrent customers complaints : often the same complaints • Failure to make amends when things go wrong • No appropriate recovery mechanism in place for service failures Recommendations to have an adequate service recovery  Act quickly  Cultivate relationships with customers  Learn from lost customers
  • 18. Third issue for the knowledge gap Issue: Inadequate Marketing Research Orientation • The company is too focused on service quality and customers expectation • Hertz is not enough focused on what customers think about the company Recommendations to have an adequate Marketing research orientation  Critical Incidents Studies (CIT)  Lost customer research  Futures expectations research
  • 19. Communication Gap
  • 20. The Services Marketing Triangle Grönroos (1990) - the Services Marketing Triangle Hertz
  • 21.  Hertz Marketing – Communications Strategy  Hertz has embraced the concept of Integrated Marketing Communications -To have a long term communication with the customer  ISMC : Integrated Service Marketing Communications Television commercials E-mail, travel magazines… Social Media, Website… Notify phone
  • 22. Social Media Strategy
  • 23. That Hertz does well to support the Service Quality  Use of tangibles evidences in advertising  Building a quality relationships service by encouraging employees to be efficient  Meet customer expectations thanks to the service provided by employees, the service process and the decor in agencies A services branding Model. Source: Berry, L.L. (2000)
  • 24.  First issue in Hertz communication  Issue: Inadequate horizontal communications - Insufficient communication between sales, operations and advertising - Marketing department that makes promises and sales- reservation departments and agencies which deliver the service are completely independent Hertz should improve the communication inside the company between the different departments
  • 25.  Second issue in Hertz communication  Issue: Overpromises in advertising and communication The availability and range of cars are not promises that can be hold by all agencies and for all rental periods 1. To make realistic promises 2. To teach customers to avoid peak demand periods
  • 26. Perceptions Gap
  • 27.  Perception GAP • GAP 5: Between a customer’s perception of a service experience and service delivery  Perception: cognitive impression that is formed of “reality” which in turn influences the individual’s actions – AMA, 2009
  • 28.  Hertz promises  Two main promises • Attractive price • Wide range of vehicles  Three other promises • provide usable and maintain vehicles • pleasable and clear reservation experience • full support of the customer Feedback questionnaire and claim management allow the company to measure customer’s satisfation
  • 29.  Identifying perception gap in Hertz In order to identify the potential perception gap we need to study customer’s feedback  customer’s opinions on forum  Five main issues linked • to vehicles’ condition • to stock management • to staff’s behaviour • to claim management • to price
  • 30.  Recommendations Perception gap would lead to bad publicity from customers, direct and wrong consequences on the image’s enterprise, and loss of potential and actual business  Hertz need to • inform the customer all along the service process • provide physical evidence • educate its customers  In concrete terms • remind the conditions of the contract, especially price and characteristics of the vehicle • stay careful about employees’ behaviour  offer them training • improve its soft management software • improve its claim management
  • 31. Service Gap
  • 32.  Hertz Marketing – Customer GAP Consumer has become increasingly demanding and expect high quality customer service • GAP 7: Between a customer’s perception of a service experience and service expectations  Customer’s expectations: what the customer expects and influenced by word of mouth, personal needs, past experience…  Customer’s perception: It is derived from the customer’s satisfaction of the specific product or service and the quality of service delivery.
  • 33. Company Rating • To evaluate the consumer GAP: analyse 5 different websites of consumers feedback • The advantage: only truth opinions of the customers Maximum of stars satisfaction: 2
  • 34.  Customers feedback
  • 35.  Customers feedback
  • 36. Customers satisfaction 42 4 1 2 1 0 10 20 30 40 50 1 star 3 stars 5 stars 1 star 2 stars 3 stars 4 stars 5 stars Satisfied customers 50 reviews 42 4 1 2 1 CUSTOMER SATISFACTION OF HERTZ SERVICES 84% 8% 2% 4% 2% 1 star 2 stars 3 stars 4 stars 5 stars RANKING OF 50 REVIEWS Analyse of: • 50 first customers feedback • 5 websites • Different countries Results: • 84% customers: unsatisfied • 8% customers: a bit satisfied • 2% customers: satisfied • 4% customers: good satisfaction • 2% customers: Very satisfied
  • 37.  Recommendations • Understand customer needs and knowing customer expectations. • Keep promises and provide the same products or services mentioned in advertising • Make gesture of goodwill to customers • Launch mystery shopper waves to improve the results of Hertz in welcoming customers • Constant customers-feedback should be taken, including evaluation of the quality by a questionnaire • Prompt response to customer request, and sincere interest in problem- solving
  • 38. Conclusion
  • 39. Conclusion Hertz is the leader on car rental service’s market  However, gaps are existing concerning knowledge, communication, perception and service. Hertz needs to improve its Service Quality in order to: - be much more efficient - stay the number one in car rental service
  • 40. ? SOME QUESTIONS ?
  • 41. Thank you for your attention