Zipcar Case: Influencing Customer Behavior

Topics: Zipcar, Automobile, Car rental Pages: 3 (1037 words) Published: February 17, 2013
ZIPCAR CASE: Influencing customer behavior
By offering car sharing, Zipcar offered a different way other than rental, car ownership or taking taxi with competitive advantage of low cost, service speed and convenience. Zipcar targets at people groups similar as car rental companies, specifically people who don’t want to own a car (hassle and cost), need a second car or different car for different purpose, but in a more convenient and cheaper way. It provides low cost by cutting infrastructure and employees. For example, it will save people who live in Brooklyn 40% by taking a 2 hour drive, compared to rent a car.

Besides cost saving which can be achieved compared with owning or renting a car, unlike traditional rental companies, Zipcar takes care of car maintenance, insurance, parking and gas. Although Zipcar offers customer service through multiple channels, its service is mainly based on online, mobile phone or Zipcar apps. Speed and convenience is Zipcar’s main focus. After joining as a member, customers can reserve through different channels, pick up the car in designated parking lot by comparing car name tag, unlock car with Zipcard, use key and gas card in the car, finally return car through locking car by Zipcard. Customers don’t have to deal with people like in renting a car and fill out papers. It offers flexibility even it has less people interaction. For example, if the gas card is not working, customers can use the gas fare receipt to get reimbursement.

Its service model is greener for business and universities. In cost wise, it saves business companies which usually have low weekly ride lot of money and time in dealing with management such as fee reimbursements. Its variety choice of green cars such as prius is very attractive to companies building sustainability. By cooperating with universities, with offered parking space, Zipcar helps to reduce university traffic and increase convenience to users in university.

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