Chapter 1: Case Analysis: Zip Car

1. Zipcar is an example of what type of market orientation?a. Sales marketingb. Value-based marketingc. Exchange marketing d. Production marketing e. Providence marketing

2. Zipcar’s goal is to have an available zipcar located within 10-15 minutes of its members. This is an example of what component of the marketing mix? a. Promotionb. Placec. Priced. Producte. Position

3. Zipcar traditionally focused on marketing towards individuals without cars as a convenient form of alternative transportation. Zipcar has not begun to also market towards businesses and organizations to use Zipcar fortheir employees. This is an example of __. a. C2C marketingb. B2C marketingc. A2B marketingd. B2B marketing e. A2C marketing

4. Zipcar’s commitment to educating customers about alternative transportation is an example of what? a. Production orientationb. Providing employment opportunitiesc. Word of mouth advertisingd. Competition e. Enriching society

5. Zipcar was developed to adapt to customer’s changing transportation needs. Zipcar’s success is because they were able to create a venture that satisfied these unfulfilled needs. This is an example of what? a. Supply chain pervasivenessb. Self-promotionc. Entrepreneurshipd. Entitlement

e. Managerial prowess

Zipcar is a for-profit, membership-based, car sharing service. Zipcar provides automobile rental to its members in hour or day increments. Zipcar was founded in 2000 by Robin Chase and Antje Danielson, who were inspired by the success of car-sharing in Europe. Since it was developed, Zipcar has become the world’s largest car-sharing service in 49 U.S. cities.

Zipcar members, also called “zipsters”, pay a $50 annual fee, in addition to rental charges, to use the Zipcar service. When members are ready to rent an automobile, they can view vehicle accessibility and reserve a vehicle through multiple channels, including; Internet, iPhone app, or telephone. Zipcars can be reserved in increments of only an hour or for multiple days. There are no service clerks, no contracts, and no lines.

When the zipster is done with the car, he/she returns the car to the car’s home location (a reserved spot for the automobile in the member’s area). Members of Zipcar are given a “Zipcard” that contains a wireless chip that opens their reserved vehicle. In addition, this chip has the driver’s license and insurance information encoded as well.

Zipcar’s fleet consists of automobiles from Audi, BMW, Ford, Honda, Nissan,and Toyota. Ford and Toyota have partnered with Zipcar to test their new electric and hybrid options with Zipcar members.

Zipcar focuses not only on creating a convenient experience for its members, but also on developing awareness about alternative transportation options. One of Zipcar’s core missions is to “change the world through urban and environmental transformation.”

Concept Check

1. Zipcar is a __ organization. a. Transaction-based b. Production-based c. Value-basedd. Research-basede. Cost-based

2. Examples of Zipcar’s value-added __ include online or mobile reservations, immediate car rental, and convenient return. a. Servicesb. Toolsc. Goals d. Ideas e. Premiums

3. Zipcar uses billboards, online advertisements, and word-of-mouth to communicate their value proposition to customers. This is an example of what component of the marketing mix? a. Promotion b. Price c. Product d. Place e. Premium

4. Zipcar uses such tools as annual member and benefits to develop a long-term relationship with their customers. This is an example of what components of the marketing mix? a. Reactional b. Relational c. Transformationald. Rhetoricale. Transactional

5. An example of Zipcar’s __ is their ability to coordinate across multiplechannels to provide an automobile to a customer when and where the customerneeds it. a. Supply chain managementb. Transaction management

c. Automotive managementd. Promotions managemente. Organizational management

6. Zipcar is considering expanding their offerings to Australia. Which of the following questions would NOT be one of the key marketing mix decisionsZipcar would need to make? a. Will we hire a celebrity spokesperson to endorse our services? Promotion b. Will we continue to charge the same annual membership rates? Price c. What major cities will we target? Place d. Will we add new automobiles to our offerings? Product e. Who will be our insurance provider?

Key TermsMarketing: An organizational function and a set of processes for creating, capturing, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.

Value: The relationship of benefits to costs or what the customer gets for what he/she gives.

Exchange: The trade of things of value between the buyer and the seller so that each is better off as a result.

Services: Intangible offerings involving deeds, performance, or effort thatcannot be physically possessed; intangible customer benefits produced by people or machines that cannot be separated from the producer.

Marketing mix (four Ps): Product, price, place, and promotion; the controllable set of activities that the firm uses to respond to the wants of its target market.