ENTERPRISE RENT A CAR: Measuring Service Quality

ENTERPRISE RENT A CAR: Measuring Service Quality
2012
ENTERPRISE RENT A CAR: Measuring Service Quality
(Case study)
NAME: Norah AL-Fahhad/200800412
Hadeel AL-Dossary/200800425
Fadheelah AL-Soqair/200900765
Arwa AL-Shehab/200901211
Sukainah AL-Khamis/200700527
Maha Al-Anazi/200600408
SECTION: 202
INSTRUCTOR: Ms. Kumarashvari Subramaniam
COLLEGE OF BUSINESS ADMINISTRATION
Marketing Principles (BUSI 3313)
ENTERPRISE RENT A CAR: Measuring Service Quality
2012
Contaxt Table:
1. Executive Summary……………………………………..
2. Introduction ...........................................................................
3. Discussion Questions………………………………………
4. Conclusion…………………………………………
5. Recommendations………………………………………
6. Referencing ………………………………………………..
ENTERPRISE RENT A CAR: Measuring Service Quality
2012
Executive Summary:
Companies conduct customers’ satisfaction surveys and other means of gathering
customers’ satisfaction information to find out whether or not their service sheets the
customers’ expectations. Such information about the degree of expectation among the
customers is very important to companies and businesses. Companies use the data about
the degree of customers’ satisfaction for improving their services or products. The data is
also important as the customers’ preferences and likeness can be used for introducing and
re-introducing the products or services.
ENTERPRISE RENT A CAR: Measuring Service Quality
2012
Introduction:
It is difficult to measure service quality because it is a subjective experience. Even if an
employee or product performed exactly as intended, a consumer may be dissatisfied for
another reason. Keeping this in mind, there are five categories that have been found to be
reliable
indicators
of
customer
satisfaction:
assurance,
empathy,
reliability,
responsiveness, and tangibles. This is called the SERVQUAL model, which has been
modified over the years to become more adaptable to a variety of situations. So,
customer service is the overall activity of identifying and satisfying customer needs.
Giving customer’s service may mean giving them excellent service once. Providing
refreshment and a place to sleep for a busy traveler on a journey. More often it refers to
the whole process of meeting customer needs time and time again and giving them
abettor service than they expected.
Most people probably think they know what Enterprise Rent-A-Car does. It is in the car
rental business and operates a fleet of more than 850,000 vehicles. However, Enterprise
Rent-A-Car has quite a different idea of what its business is all about. In Enterprise's
view, the business it is involved in is customer satisfaction. This is a characteristic that it
shares in common with every successful service company, large or small. A service
business is one that meets customer needs by providing them with a valued service. As
ENTERPRISE RENT A CAR: Measuring Service Quality
2012
individuals, all of us use services having our hair cut, going to the cinema, drawing
money out of our bank account and many other activities. Businesses also use services
such as transport, insurance, and financial services.
Discussion Questions:
Q1:
Likewise, knowing whether the company’s service/s meets the customers ‘needs and
thereby satisfying them, helps the company in forecasting its sales. That is, the measuring
data for satisfaction helps in tracking the changes and shifts which, in turn, helps the
company in knowing how much it will be selling in the future by making the use of rate
of satisfaction degrees. The company here uses sales history and relates it with the degree
of satisfaction.
Moreover, companies do customers satisfaction surveys to make the customer feel
engaged and have a sense of loyalty to the company. That is, if the customers remain just
buyers of the company’s products and services, by the time he or she would feel that the
relationship is unfair and as if the company is exploiting him. But if the customer feels
the company cares for him and work for his satisfaction, he is likely to look up it the
company and feels that the company is part of his life.
In addition, doing customers’ satisfaction survey is actually an investment. Surveying
customers’ satisfaction helps the company generate and increase in sales and profits. For
instance, customers may come back to buy more if he trusts the company and it keeps in
touch with him and this means more buying and more income for the company. The
ENTERPRISE RENT A CAR: Measuring Service Quality
2012
customers may also talk about their purchases with their friends, family members and coemployees. This is like free promotion for the company’s services because the second
party will go and buy that product.
A. Satisfying the customers and identifying problems for improvements
B. Time that customer spends on the renting process in and out
C. Communication between the enterprise and the customers to keep
customer remember them and to feel how well they take care of their
customers
D. They are trying to rate themselves sand see their stand among other
companies
Second part – they gathered information to see any deficiencies in their renting process
and to track customer’s feedback as partners. Moreover, to reduce the time that takes to
process renting car.
Third part – to improve their services.
To reduce time of processing rent a car.
To evaluate branches to use it for promoting a manager or branch.
ENTERPRISE RENT A CAR: Measuring Service Quality
2012
Q2:
First, research approach of enterprise has agreement to use the survey approach in their
system because it’s the perfect way to gather their descriptive information. However, the
survey research can be flexible and has lower cost than the experimental research.
Second, the enterprise decided to use the mail method to contact customers instead of
using the telephone and personal methods. However, this text indicates that the methods
have lower flexibility, good control of interviewer effects, very good cost and good
quantity of information. In this case discussion, the instructor can use this to point out the
tradeoffs that many of the companies make it when they select one contact methods over
other methods.
Third, the research instrument used by the enterprise is the questionnaire with primarily
closed-ended questions. Also, it can be selected to a research too, or a set of guidelines
for observation in the enterprise.
Fourth, of the enterprise has selected simple random probability sample for each
customers their sampling. For example, each customer should have 1 in 30 chance of
selection and the customer is the sampling unit. However, we cannot know the sample
size because we don’t have any idea about the number of customers that the enterprise
has till now, but what we can do is to assume that the company has selected 1 in 30 rule.
The reason is to have a large size for sample that already given predicted responses rates
so it has a reliable sample
ENTERPRISE RENT A CAR: Measuring Service Quality
2012
Q3:
The company could have alternatively used interview method, which involves
direct contact with their clients. Every client who came to the company would have been
asked these questions. Face to face interviews with the company’s clients would have
been advantageous because it would have enabled the company generate a rapport with
the customers. This method would have yielded high response, and the company would
have clarified any information from the clients that it felt needed. This method would not
have been expensive because the company would not have spent money constructing and
mailing questionnaires to their customers and also, it would have made sure that
questions are asked to their clients.
Telephone interview would have been used too, where the company would
contact its clients and make them respond to these customer satisfaction questions. This
method would have made it possible to contact every client with a phone from the
company, and it would have been more effectual than mailing system. The response rate
is much higher than the mailing system because with the telephone interview, the
company is sure that they reach their customers and that there is immediate feedback.
It would have also used the internet to conduct research, and this involves posting
the questions to the company’s website where customers leave their feedback. This is not
costly, and customers without a mailing service are able to obtain information regarding
the company. Direct observation would have helped where the management can observe
the inflow of customers to the company, and possible complains that they display in the
premise. This would have also been used to gather information, and it is not costly. These
ENTERPRISE RENT A CAR: Measuring Service Quality
2012
methods would have been effective in gathering information regarding customers’
satisfaction in the company.
Q4:
Enterprise Rent-A-Car works to find out customers’ satisfaction by providing good
service. However, for the company to improve it, the company should know the right
method sin gathering the need information.
The date is important to use in company that run good strategies for it.
The information helps the company to make improvements through the development of
an entirely new way to look at the organization. It also works on the other parts of the
organization to increase customers’ satisfaction be such detailed research projects could
be done to improve services.
Questionnaires and Enterprise Service Quality Index (ESQi) were used to gather
data/information. Questionnaire shows respect by asking two questions or more on
customers. The first one: Will you come again and rent a car? The second one: How do
you rate our services from your past experience to our organization? Through previous
questions, the company knows if the customer is satisfied or not. Then the company has
the background on the percentage of clients, which, in turn, helps to improve the
satisfaction of the customers?
ENTERPRISE RENT A CAR: Measuring Service Quality
2012
The organization uses the data from the surveys for improvements. The organization
usually uses an independent telephone or online survey company to provide the survey
results. The said independent company sends details of the customers’ complaint to find
out the main reason of the problem. The company then will work out and create a good
solution to that problem. Another method the organization can use is the use of the
system of constructive criticism. That is, the company has to check the best and the worst
worker/s system every week. The main purpose is to get more effective and to improve
the performance of the employees and the service of the organization. The company can
do constructive criticism by voting.
Conclusion:
The Enterprise is aiming to continuously improve their services and reduce the process
time of renting a car. This is also done to minimize there sponge time that takes to
respond to a pickup service or others. The Enterprise intends to keep continuous
relationship with their customers and keep in touch with them by making surveys to make
customers feel how important they are, how welcome they are any time and to remember
them. Moreover, to established data foundation from surveys feedback and using them to
close any deficiencies or gabs for better services and customers satisfactions. In addition,
the data can be used for branches evaluation and it could be used for manager’s
promotions. This will result to continuous excellent customer service.
ENTERPRISE RENT A CAR: Measuring Service Quality
2012
Recommendations:

To use a specialized team in doing surveys and continue using normal mails,
Email and Website questionnaires

To form a team to track implementing recommendations that result from surveys
and questionnaires

Develop a clear vision and mission that employees govern and follow

Focusing in developing employees by continuous training and attending
conferences in dealing with customers’ satisfactions, to reach customer oriented

To develop a system that customer collect points for each rent and it can be used
for rent or gifts. By using cards with different levels (Silver, Gold and Platinum)

To make door to door services, when it is requested by customers by phone

Internet shall be used to make reservation

From time to time, rate yourself among big companies and what is the market
share to enhance your targets and goals and to meet your strategies and objectives.
ENTERPRISE RENT A CAR: Measuring Service Quality
2012
Referencing:
1. (2010, 10). Case Study Enterprise Rent a Car. StudyMode.com. Retrieved 10,
2010, from http://www.studymode.com/essays/Case-Study-Enterprise-RentA-Car-422317.html
2. Bloisi, W., Cook, C.W. & Hunsaker, P.L. (2003). Management and
organizational behavior. McGraw-Hill, pp: 523-580.
3. Enterprise Rent-a-Car: Measuring Service Quality. Anti Essays. Retrieved
October 15, 2012, from the World Wide Web:
http://www.antiessays.com/free-essays/295698.html
4. Gabriel Schneider, Ingrid K Geiger ve Johannes Scheuring. Prozess- und
Qualitätsmanagement: Grundlagen der Prozessgestaltung und
Qualitätsverbesserung mit zahlreichen Beispielen, Repetitionsfragen und
Antworten German, s. 194 Verlag: Compendio Bildungsmedien; Auflage: 1.,
Aufl. (September 2008)