Zipcar : Influencing Consumer Behavior Case study

1. ZipCar: Influencing consumer
Behavior
Group 4
14P017 Gurunath S
14P047 Shivank Pandya
14P075 Devang Nahar
14P113 Tanvi Agarwal

2. ZipCar Service
ZipCar was a car rental service, Started in Boston in 1999
Operated in 21 Cities and ownder more than 400 Cars.
Growth :
January 2005: 30,000 registered users,
1500 new members monthly,
new partnerships with universities: Tuft
Positioning: Low-cost alternative to car rental and ownership
To use Zip car’s services
Join
Reserve
Unlock
Drive

3. ZipCar Service- The Mix
Product
-Membership based car rental
-Differentiated plans
-Occasional
-Extra 50
-Extra 75
-Booking per hour or on daily basis
Price
-Daily price charged at about
8*hourly rate (@8.5$)
-Varied across cars
-Higher daily rate than other rental
car
- $125 initial cost with additional
membership fee
Place
-Book online or via call
-Car parked in specified areas to
be picked and dropped off by
customer
Promotion
-Online
-Based on comparison with other
car rentals on price and
convenience

4. ZipCar Vs Rental cars
Car Rental
•Daily Rate: $43.00 (No hourly
options)
•Gas Charges: $10.00
•Insurance Waiver: $21.95
•21-25 Age Surcharge: $30.50
•Parking: $8.00
•Additional Fees: $4.00
•Total: $86.95
Zipcar
Daily Rate: $60.00 (Or by the hour
for $8.50)
Gas: $0
Insurance: $0
21-25 Age Surcharge: $0
Parking: $0
Additional Fees: $0.00
Total= $60.00
Save $26/day

5. ZIPCAR
Huge
Savings
Convenience
All inclusiveFlexibility
Community
Is it for me??
Sense of
Exclusivity
ZipCar- The Brand

6. Problem Statement
• Karr doesn’t find any car at the pickup point
• Her buffer time was reducing as she called the
Zipcar service for assistance
• Fishman tried informing Zipcar of the delay but
was unable to do so as a result of the interview

7. Recommendations
• Prompt for extending the reservation every 15 mins before
the return time
• Fail to extend reservation and still using : Charge Late Fee
• Should incentivize people to return cars on time
• Buffer Cars to accommodate the aggrieved
• Cars can be of higher category provided at the same price or
with other benefits to ensure good customer experience
• Member rating system whereby they are evaluated on the
time vehicle is returned
– Members with high ratings can be given occasional free
upgrades and other benefits
– Members with low ratings to be given cars at a higher
tariff rate

8. Thank You