Question: Which mechanisms does Zipcar have in place to manage behavior?

What, specifically, are the mechanisms intended to accomplish? What adjustments, if any, would you recommend the company make? Answer: Few mechanisms that Zipcar has in place to influence customer behavior are: a) Fee Structure: They charged yearly membership fee to ensure a fixed revenue from a customer. Variable fee was charged to influence need based reservation from customer. b) Reservation System: Zipcar vehicles can be booked as early as a year in advance to minutes before the members need the vehicle. The booking can be done by a simple call or through online reservation system. Hence the reservation system provided the flexibility to the customer. c) Sense of responsibility in customers: as in case, Sal Fishman considered it is important to inform Zipcar that he might need to extend his reservation time. Such a responsible behavior is rare to find in customers. It is Zipcar which has ingrained in the mind of members, the importance of adhering to deadline of returning the vehicles to their designated parking areas. Recommended adjustments: 1) Send the notification to customer an hour before his reservation expires. In case customer cannot confirm the return of vehicle, arrange a backup plan for customers who are going to use that car. 2) Penalty system in normal plans to influence the late returning behavior of customers. 3) Create a plan under which customer can book the car for flexible hours and return deadline doesnt need to be adhered strictly. Additional charges to book under this plan should be taken.

Not needed: As customer is a co-producer in creation of a service, we understand that if customer fails in his role/responsibility, he affects 1) His own experience 2) Other customers experience or 3) Companys productivity In case of Zipcar, if a customer fails to return the vehicle to its designated place, he affects the next customer as specified in case (Anita karr and Sal fishman).