Car Rental Case Analysis

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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…show more content…
Sensing the customer’s expectation of cheap car rental service, is able to achieve more than 90% occupancy rate. The other gap may be in terms insufficient listening gap. As only 1-2 executives were present on the location to rent away the cars. Only few executives may be unable to deal with more than 100 customers at a particular site. The service design and standards gap: This service gap is the difference between company understanding of customer’s expectation and the development of customer driven service design and standards. In, the service is designed by the management keeping in view the customers need and their convenience. Many locations were not in the expected place for the pickup of the vehicles. Due to the cost minimization strategy, renting spaces were not at the main site. For example, did not rent any spaces near airports as they were costly. This gives arise to the 2nd service gap of design and standards gap. The service performance…show more content…
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 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

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