IHIP-Intangibility, Heterogeneity, Inseparability

EASYCAR.COM

Case Analysis

By

Bhutesh Niroula

UM15322

IHIP - Intangibility, Heterogeneity, Inseparability and Perishability of service

Intangibility:

The service of car rental is intangible. But if we analyse, rented vehicle is physical nature and tangible. Consumers can see and touch the rented vehicle and visit stores. In this industry, the service provided is the physical car. This significantly affects the service delivery process of industry as they have to keep in mind that consumer wants more and more quality and in case of car rental they can easily judge it.

Heterogeneity:

Though to some extent, car rental services can be standardized, but the individual response and delivery are heterogeneous in nature. In automobile rental

To ensure that once booked, the vehicle is available during the pickup time is of essence important. Due to its 90% occupancy rate, if any vehicle is not returned on time, the reliability on the service of easycar comes into question. To tackle the issue of reliability, company has imposed a heavy penalty of 120 euros to those returning the vehicle off time. It also ensures that once booked, the vehicle is available on time for the pickup.

Responsiveness:

Due to less staff, easycar lack in this vertical. Inadequate staffing led to the wait time for the customer for more than half an hour. For new customers, the policy explanation and contract signing took more time thus reducing the response time to other customers in line.

Assurance:

Although sceptical about the additional charges, customers were assured about the availability of the car. The wait time of more than half an hour was a disadvantage to the company’s process but customers were not turned away. Once booked, the vehicle availability was ensured.

Empathy:

Low staffing by the easycar affected this vertical of service quality. Staffs were unable to give individual attention to the customers. One or two staff handling a fleet of more than 100 cars made it difficult to carter the individual needs of the

The feeling of driving such cars contributes to the tangible part of the service delivery. Although their offices were in garage or rented spaces, which were not pleasing in appearance, the branded new car and their cleanliness contributes to the good tangibility of the service delivery process.

The Marketing Mix (7 P’s Framework)

Product:

Car rental is the basic service provided by the easyCar.com. It mainly provides its service in the main cities of Europe. Some of the countries in which its services are available are France, Netherlands, Spain, United Kingdom, etc.

Place:

 Its outlets are not located in posh area of European cities

 Its outlets are near bus train station and some are near airport but on the off side of airport.

 Airport located outlet are opened 24 hrs while others working hrs are 7am to 11 pm.

 The outlets are not equipped adequately.

 At a particular location there are only 1 or 2 people working at a time

Price:

 The Company followed Demand based Pricing and strategy it followed was Synchro-Pricing.

 Although it advertised the rent as low as € 5/day.

 This amount was applicable to weekdays only othewise the rates are slightly higher.

 As the rental date come near the price raises.( to achieve 100% fleet utilization)

 The total money which the customer paid is sometimes higher than the rental