Zipcar Case
1. What is the role that the customer plays in Zipcar’s operations (list specific activities) and what mechanisms does Zipcar have in place to manage these customers’ behavior? (10 pts)
Zipcar customers play a variety of roles within the company’s operations. Specifically, people firstly purchase the annual membership and get Zipcard once approved. Then as a Zipcar member, customer can make reservations for hourly/daily car rental through the company’s online reservation system, phone, or mobile app. Customers simply pick up the car by unlocking it with Zipcard at the scheduled time. When the reservation time is almost up, customer returns the car to the same reserved parking spot. The Join-reserve-tap-drive structure Zipcar builds to offer customers is simple and very easy to understand and to follow. Since Zipcar’s customers are mostly young people (18 to 40 years old), both cost and environment conscious, and busy in school/work. By understanding that this group of customers tend to have less patience/time in going through complicated booking system, and not willing/able to pay premium membership fees, Zipcar developed easy-to-join membership programs, user-friendly online reservation system, and offered relatively lower hourly and daily rates with gas and insurance included. Zipcar must have studied their target customers’ needs to provide these features customers would value the most. And the customers purchase decision processes are also examined to help Zipcar set pricing standard at acceptable rate. To sum up, Zipcar correctly interprets the customer behavior of their target market, and they managed to influence customer behavior in an efficient way.
2. 2. Assume that the average revenue (sales) numbers per car are the same regardless of region. Use case data (hint: Exhibit 1) to fill in the missing columns in the following BDI table. (15pts; please show your work) Is the BDI number for MA good or bad news for Anita? Explain. (5 pts) Where should
Zipcar customers play a variety of roles within the company’s operations. Specifically, people firstly purchase the annual membership and get Zipcard once approved. Then as a Zipcar member, customer can make reservations for hourly/daily car rental through the company’s online reservation system, phone, or mobile app. Customers simply pick up the car by unlocking it with Zipcard at the scheduled time. When the reservation time is almost up, customer returns the car to the same reserved parking spot. The Join-reserve-tap-drive structure Zipcar builds to offer customers is simple and very easy to understand and to follow. Since Zipcar’s customers are mostly young people (18 to 40 years old), both cost and environment conscious, and busy in school/work. By understanding that this group of customers tend to have less patience/time in going through complicated booking system, and not willing/able to pay premium membership fees, Zipcar developed easy-to-join membership programs, user-friendly online reservation system, and offered relatively lower hourly and daily rates with gas and insurance included. Zipcar must have studied their target customers’ needs to provide these features customers would value the most. And the customers purchase decision processes are also examined to help Zipcar set pricing standard at acceptable rate. To sum up, Zipcar correctly interprets the customer behavior of their target market, and they managed to influence customer behavior in an efficient way.
2. 2. Assume that the average revenue (sales) numbers per car are the same regardless of region. Use case data (hint: Exhibit 1) to fill in the missing columns in the following BDI table. (15pts; please show your work) Is the BDI number for MA good or bad news for Anita? Explain. (5 pts) Where should