Yashaswi Madan A1802014106
ABOUT MERU CABS
Meru Cabs is one of the first companies to launch metered "Radio cabs" in India
under its brand "Meru." First launched in Mumbai in April 2007, Meru Cabs has
grown exponentially in terms of fleet size and geographical presence.
Customers benefit from a relaxed commute in a well equipped, air-conditioned
cab, which is readily available 24/7. Headquartered in Mumbai, Meru Cab
Company provides a radio taxi service in the four key metros of India -
Mumbai, Delhi, Hyderabad and Bengaluru. Meru Cabs delivers a reliable taxi
service by concentrating on each touch point with its customers and devising
systems, processes or technologies that will deliver a reliable interface. Meru
Cabs uses GPS/GPRS enabled technology in all of the cabs to ensure complete
passenger safety. Each Meru cab is owned & maintained by Meru Cab
Company Private Limited. The name "Meru" is derived from the symbolic
mountain of the gods, an icon of unshakeable reliability and character - a core
value which lies at the heart of Meru's promise to its customers.
The most common road vehicle is the automobile; a wheeled passenger vehicle
that carries its own motor. Other users of roads include buses, trucks,
motorcycles, bicycles and pedestrians. As of 2010, there were 680 million
Automobiles offer high flexibility and with low capacity, but are deemed with
high energy and area use, and the main source of noise and air pollution in
cities. In the urban areas Radio taxis are the most preferred mode of
transportation for the local people.
In India, the most common taxis are Premier Automobiles (Fiat), Maruti
Omni, Tata Indica and Hindustan Ambassador. Small LPG auto-rickshaws are
more commonly used in the suburbs. Recently Toyota Innova and Toyota
Corolla are becoming more common.
According to Government of India regulations, all taxicabs are required to have
a fare-meter installed. However, enforcement by authorities is lax and many
cabs operate either without fare-meter or with defunct ones.
Analysis of the Research
The group collected responses from 100 respondents mostly students, few office
goers, a handful of working women and from some old aged people. The
interpretations are as follows:
1. Correlation Matrix: This correlation matrix summarizes the
interrelationship among set of variables or a set of items in a scale. In our
case the determinant value for the Correlation matrix is 0.73 i.e. it lays
between 0 to 1 and hence according to the thumb rule if the determinant
value lies between that ranges then we can conclude that the correlation
matrix is neither an identity matrix nor a singular matrix. This value
confirms the assumption that there are sufficient inter relationships
among our study items.
2. KMO & Bartlett’s Test: The output shows that there is sample adequacy
of 0.750 and according to the thumb rule any value above 0.6 suggests
that the sample taken is adequate. Hence in our case the sample taken is
Larger the value of Bartlett test indicates greater likelihood the
correlation matrix is not an identity matrix and null hypothesis will be
rejected. In this example, The Bartlett test value (560.670) is significant
(i.e., a significance value of less than .05); this means, we may reject the
null hypothesis that our correlation matrix is an identity matrix and will
conclude that the variables are correlated highly enough to provide a
reasonable basis for factor analysis.
3. Rotated Component Matrix: The initial SPSS output shows that there are
cross loading in factors, hence we removed a few variables from our
research work and again performed Factor Analysis. The output is shown
This output now shows that cross loadings are removed from the factors and we
have identified 4 factors through the help of factor analysis. The factors are:
Quality(Factor 1) – includes reliability, re-booking, customer service,
accessibility, GPRS/GPS Technology & Maintenance
Convenience(Factor 2) – includes comfort, timely service & booking
Responsiveness(Factor 3) – includes drivers are customer friendly &
Value for money
Worthiness(Factor 4) – includes brand name and waiting costs
1. Model Summary: The in SPSS regression output shows the model
summary, which provides the value of R (Multiple Correlation), R2
(Coefficient of Determination) and Adjusted R2 (R2 adjusted with
Degrees of Freedom). In this model, R has a value of 0.556. This value
represents the multiple correlations between dependent and independent
variables. The value of R2 shows all the three independent variables can
account for 31 % of the variation in Likeliness. In other words, if the
researcher would like to explain the contribution of all these four factors
on likeliness, looking at the R2 it is possible. This means that around 34
% of the variation in likeliness cannot be explained by these factors.
Therefore, it can be concluded that there must be other variables that have
influence on likeliness.
2. Coefficients: Therefore, it can be interpreted that if our independent
variable is increased by one unit (CONVENIENCE), then our model
predicts that 35% change in depended variable (here Likeliness) occurs
while holding other variables like Quality, Responsiveness & Worthiness
constant. Also it means that there is an inverse relationship between
responsiveness & with likeliness. That is if the company focuses more on
these factors it will not help increase customer likeliness.
Note: The significance of Factor 4 exceeds 0.05. So we have not
considered factor 4 for our further study.
Thus through this model we are able to predict that:
Convenience which includes: includes comfort, timely service & booking
is easy is the most contributing variables that differentiate this brand from
other cab service providers.
Customer likeliness is more dependent on these variables and the
company should focus their efforts in providing more comfort in the car
with proper leg space and enough space for storage of luggage
Also it is seen that customers perceive that Meru Cab is providing timely
service and therefore it should increase its fleet of cars so that it can
continue to be able to provide timely service even in case of heavy
Moreover customers prefer Meru Cab because of its ease of booking.
Hence we suggest that Meru cab should strengthen their backend
operations specially the customer service & the call center department
which handles customer queries. This will enable them to provide more
quick, error free and efficient solution to all customer queries and
customer likeliness will definitely increase if they can provide smoother
Managing Service Differentiation:
It’s evident from the research that the Meru Cabs is offering better service than
other cabs in terms of comfort, timely service and above all it also offers
innovative feature like the well managed GPS/GPRS. Hence it proves a point of
Managing Service Quality:
As we know that customer satisfaction and retention are few measure of quality
as we can see from the project that meru cab provides timely service, comfort..
Hence because of that it is able to retain its customers. Also we have suggested
in order maintaining its service quality, meru cab will have to increase its fleet
of cars. So as to reach the customers as quick as possible.
Service quality heavily depends on quality of the customers and service
provider, customers prefer Meru Cabs because of its superior customer service,
hence in order to strengthen its service Meru Cabs should develop interactive
marketing which will help it to excel in providing service and eliminate the
Meru Cab Advantages:-
1) Simplifies Decision Making of the customer: As Meru cab provides
timely service, level of comfort and since booking is also quite easy as
compared to other competitiors existing in the industry, it compels people
to opt for Meru Cabs as compared to its competitiors.
2) Reasonably a few features like reliability, re-booking, easy accessibility,
GPS/GPRS technology and maintenance, the Meru Cab brand earns
competitive advantage in the market as compared to other cab service
3) Willingness to pay more for Meru Cabs.
Objective: To derive the factors that influences the consumer’s decision while
choosing a cab service.
No. of Male/ Female: Male: 4
The FGD was conducted on 6th Feb at 6pm. The primary purpose was to
find out the various factors that influences the consumer’s decision while
choosing a cab service. The respondents were selected on a random basis and
the sampling unit were the MBA students. The FGD was focused on various
questions such as the occasion when they use cab service, what influences the
decision while choosing a cab, what factors they look into while booking a cab
service. The various factors observed during the FGD are given below.
The respondents shared their opinions on a number of factors. The cab
service is occasionally preferred by all the respondents. Occasions such as late
nights or while travelling with luggage or time constraints makes them prefer
the cab service. While choosing the cab service majority of the respondents
opined that they prefer timely, efficient and quality of service. The brand name
played a small role in selecting the Cab service. Fares are also a constraint for
some of the respondents. Since safety is a concern for some female respondents
especially during the nights, they preferred a branded service. The quality of
service provided in terms of technology also influenced their decision
What is your occupation?
Have you ever availed the services ofMeru Cab?
If yes, please fill in the following questionnaire about your experience on the
services of Meru Cabs:
Disagree Neutral Agree Strongly
1 I am comfortable in Meru Cab
2 It is safe to travel in meru cabs
3 Meru Cab provides timely service
4 Booking Meru Cab is easy
5 Meru cabs are reliable in case of
6 Mode of payment is flexible
7 I would prefer to re-bookthe cab
8 Meru Cab customer service
9 The service is available to any
place in the city
10 I prefer Meru cab because of its
11 Meru Cab serves on a short notice
12 The waiting costs and night time
fares are reasonable
13 GPS/GPRS Technology used by
meru cabs gives an edge over
other cab service providers.
14 Meru Cabs are well maintained
15 Drivers are customer friendly
16 Meru Cab is value for money
17 Likeliness for Meru Cab