POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 1

Chapter 1

THE PROBLEM AND ITS BACKGROUND

Introduction

Transportation services have an important role in tourism since the essence

of tourism requires some sort of movement from, to or in between locations. Car

rental agencies, along with many other factors, play a vital role in increasing the

ease of transportation by providing a service where tourists can easily travel within

their destinations. In this sense, car rental service is important for tourist

satisfaction, retention and the expansion and capacity of rent a car business in the

tourism industry in the international markets.

Unlike tangible goods or pure services, most travel-related experiences are

an amalgam of different goods and services like transportation, accommodation,

food and beverage, and so on (Chen and Gursoy, 2001).

The Philippine tourism industry flourished in the 1970s and early 1980s but

declined in the mid 1980s with the average length of tourist stay falling from 12.6

days in earlier years to 8.9 days in 1988. In 1987, tourism growth was slower in the

Philippines than in other Southeast Asian countries. About 1.2 million tourists

visited the Philippines in 1992, which was a record high in the number of tourist

visits since 1989.

The modest growth of the global economy due to positive worldwide GDP

growth maintained the double digit growth of domestic and inbound tourists and

the healthy performance of outbound travelers in 2011. This led to a strong value
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growth of travel and tourism including car rental, health and wellness tourism,

tourist attractions, travel accommodation and transportation. The performances,

however, were lower than the previous year due to the slower economic activity as

a result of the natural disaster in Japan, political conflict in the Middle East, the

European debt crisis and the slow economic recovery of the US.

In 2008, the Philippines' tourist arrivals totaled 3.1 million. In 2009, it totaled

3,017,099, and was expected to grow as much as 3.5 million in 2010. In 2011, the

tourist arrival in the Philippines was totaled 3,917,454. In 2012, the Department of

Tourism recorded 4.3 million tourists visiting the country.

Based on the results of the 2009 Survey of Tourism Establishments in the

Philippines, there were 1,430 establishments engaged in transport operators, tour

and travel agencies for all employment sizes, 1, 864 establishments or 60.4

percent operated under Activities of tour and travel agencies. This was followed by

Supporting and auxiliary activities to water transport industry with 152

establishments or 10.6 percent. Activities of booking offices/Tourist assistance

activities, not elsewhere classified recorded 119 establishments or 8.3 percent. On

the other hand, only five establishments operated under Domestic air passenger

and freight transport /International air passenger and freight transport.

Transport operators, tour and travel agencies reported total revenue of

PhP164.5 billion of which 41.6 percent were generated from tourists. Among

industries, Domestic air passenger and freight transport /International air

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passenger and freight transport earned both the highest total revenue and revenue

generated from tourists with PhP97.1 billion and PhP54.3 billion, respectively.

All the revenues reported by Chartered buses and cars operation, activities of

tour and travel agencies, activities of booking offices, and Tourist assistance

activities, not elsewhere classified were generated from tourists (STEP,2009).

Philippine tourism was off to a good start as the country welcomed 436,079

visitors in January 2013, a 6.09% increase vis-à-vis last year’s volume of

411,064 for the same month.

Korea still remains the leading visitor market with 134,994 arrivals

comprising 30.96% of the total inbound traffic. The Korean market grew by

32.13% against its 2012 arrival of 102,166. This growth is the highest among

the top five markets of the country. The second largest market is the United

States with a share of 15.07% to total arrivals. 65,709 visitors from the U.S.

visited the Philippines in the first month of 2013, up by 4.04% from 63,160 in

2012. Japan provided the third biggest arrivals with 34,553 visitors which posted

a 7.92% increase over the previous year’s arrivals of 32,089. It accounted for

7.92% of the total visitor volume for the month.

The Chinese market registered 24,952 arrivals, constituting 5.72% of the

inbound traffic. This marked a 41.79 decrease from its year-ago volume of

42,868. Visitor count from Australia rose by 21.08% from 16,145 last January

2012 to 19,549 this year. It captured 4.48% of the overall visitor volume, making

it the fifth biggest generating market.

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Other markets with significant contributions included Taiwan with 16,170

arrivals, Canada with 14,660 arrivals, Singapore with 12,130 arrivals, Malaysia

with 10,232 arrivals, United Kingdom with 9,854 arrivals, Hongkong with 8,310

arrivals, and Germany with 6,389 arrivals.

Visitor arrivals from Russia went up by 18.06% from 4,447 in 2012 to 5,250

in 2013. The French market posted an 11.64% growth (3,732 arrivals).

By regional grouping, the East Asian region supplied 50.32% of the total

traffic base with a production of 219,448. It is noted that most of the country’s top

markets belong to this region. It posted an increase of 3.72% versus its arrivals of

211,568 the previous year.

The North American region had an aggregate total of 80,573 arrivals, with all

countries under this region recording positive gains. This region posted an increase

of 4.09% and constituted 18.48% of the total inbound volume.

Countries from the ASEAN region provided 32,266 visitors, constituting

7.40% of the total visitor count. This region posted an increase of 16.53%

compared to its contribution of 27,690 a year ago. Australasia/Pacific numbering

24,287 arrivals comprised 5.57% of the total visitor traffic and grew by 17.66%

vis-à-vis its arrivals of 20,642 in 2012. Arrivals from the Northern European

region aggregated to 18,093 growing by 4.17% against its arrivals of 17,369 the

previous year. This region shared 4.15% to the total visitor count (Tourism

Research and Statistics Division).

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It seems that the importance of travel facilities, especially car rental

business, will gain more attention and unavoidably car rental owners will have to

provide more extensive and better quality services to be able to compete with the

growing needs and expectations of international tourists. Since customer

satisfaction is an outcome of service quality (Cronin, & Taylor, 1992; Anderson, &

Sullivan, 1993) and customer satisfaction is associated with constructs such as

repurchase intentions and word of mouth communication (Davidow, 2000), owners

of cat rental establishments must understand the expectations and perceptions of

their customers.

On the other hand, the car rental industry is prevalent in USA, Europe, and

Australia as highlighted by varied electronic databases. The absence of studies or

of availability of benchmark in the Philippines does not mean that the car business

is not viable or not flourishing. It so happened that there is not enough focus on

the analysis or the industry has maintained silence to sustain non-disclosure of the

intricacies of the trade. It might also be that the professionalism of the

entrepreneurs was given lesser priority over the demand for business survival.

The majority of car rental companies’ revenue is generated at airport rental

locations. A sustained decrease in airline passenger traffic or the loss of a

significant airport concession could have a material adverse effect on the financial

condition and results of operations. Events that could reduce airline passenger

traffic include, in addition to a general economic downturn, labor unrest, airline

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bankruptcies and consolidations, substantially higher airfares, the outbreak of war,

high-profile crimes against tourists and incidents of terrorism.

A car rental company could be adversely affected by limitations on fuel

supplies, the imposition of mandatory allocations or rationing of fuel or significant

increases in fuel prices. A severe protracted disruption of fuel supplies or

significant increases in fuel prices could have a material adverse effect on the

financial condition and results of operations.

The vehicle rental industry is highly competitive, particularly with respect to

price and service. In addition, recent changes in ownership of a number of the

major vehicle rental companies could further intensify competition. In any given

location, franchisees may encounter competition from national, regional and local

companies, many of which, particularly those owned by the major automobile

manufacturers, have greater financial resources. Similarly, the vehicle leasing and

vehicle management services are also highly competitive. In addition to the major

providers of fleet management services hundreds of local and regional competitors

and numerous niche competitors who focus on one or two products. From time to

time, either because of overcapacity or reduced demand, the major vehicle rental

companies has been subject to industry-wide price pressures. A recurrence of

oversupply or a marked reduction in overall demand could adversely affect our

ability to maintain or increase our rental rates.

Whatever remarkable triumphs, bad or worth-emulating encounter, threats,

and/or warning signs in the operations of car rental business in the country,
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especially in the National Capital Region (NCR), to each his own to keep.

However, there are several domestic online searches that show contact details

only, if not including company profile and website. Obviously, the car rental

industry experienced threats lately as reflected by the car napping issues in the

guise of road altercation and mishap, use fabricated scripts and stories to

persuasively take custody of a vehicle, and/or forcibly take away a car from the

owner. These are the risks that the car rental industry is more concerned of,

compared to soaring fuel and maintenance costs together with road accidents. No

degree of marketing expertise and efforts may counterbalance a one-time car

napping incident or that of a loss of control in the issuance of cars to unfamiliar

renters/clients. Yet, in any business, risks are always there to loom. It is just a

matter of varying degrees and levels of uncertainty and the minimization of risks to

keep marketing reap its goals.

In documenting the car rental industry in the NCR, sets basis of car rental

operations as well as academic exercise for entrepreneurs and would-be

entrepreneurs who are going into this type of service. Likewise, it shall explore

the client’s level of satisfaction, marketing strategies for various sectors of the

clients and destinations and whatever suitable product variations to offer in order

for a car rental business to survive.

From an entrepreneur’s point of view, this study provided some pointers to

interested individuals like yours truly to be familiar with the car rental business.
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As contribution to this course, this paper intends to be an eye-opener in

assessing car rental businesses, provide some form of case study, and be an

application of theories to real business setting.

Background of the Study

Car rental firms cater to the travelling population consisting of individuals and

corporate entities by realizing that there are benefits than just renting a car.

Privacy, flexibility and convenience become the major intangible features, which

are also enjoyed in owning a car. But, in the case of renting, there is that ease of

mind and the savings from troubles and worries maintaining a personally owned

automobile. In other words, car leasing service offers an alternative, at least in the

short-term period, the use of a motor vehicle for a specific purpose due to the

evident constraints of owning and using one’s car.

Mobility and convenience are two of the most significant needs for a transport

facility. Ownership of a motor vehicle, in most cases, is prohibitive in terms of its

purchase/acquisition price. The mere possession of a car entails exorbitant

expenses regularly incurred for fuel, oil, lubricant and fluids including servicing and

repairs as well as replacement of worn-out parts or accessories.

There are specific segments of society functions and rent cars for business

reasons, social function and personal uses, such as executives or businessmen in

transacting and negotiating deals somewhere, entourage or cortege for special

occasions like weddings, motorcade and parade, or fetching guests, and for leisure

trips, sightseeing or tour of scenic spots.

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Moreover, the services offered by car rental firms are either self-driven (u-

drive) by clients or with chauffeur arrangements.

By targeting these segments of the market, it has been the objective of some

enterprising persons and profit-conscious investors to engage in such seemingly

lucrative trades.

Service organizations are fundamentally important to the economy of any

country, as they contribute, amongst others, to its gross domestic product (GDP)

and employment rate. Growth in the service sector has persisted since the late

1990’s and service industries have a great impact on national economies. The

growth in the service sector has led to it becoming much more competitive,

transforming the management and marketing of service organisations (Rootman et

al., 2007:181-182).

For example, the number of Avis car rental outlets in South Africa has grown

by 17.5% since 1994, and is responsible for the creation of 3.7% of employment in

the service sector of the country (Avis, 2008).

In the NCR, the common pick-up points of renters are no different from

elsewhere such as airports, hotels, offices/businesses, private individuals location,

downtown or suburb territories, and may even be transport terminals. Airports

have accredited operators, same with some travel agencies.

Car rentals are available at airports, hotels and travel and tour agencies and

from other local car rental companies. Some of the most reputable car-for-hire

companies in Metro Manila are the First Car Rental Manila, the Gemini Transport
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Services, Inc., Dollar-Rent-A-Car, JB Rent A Car, Avis Manila Philippines,

Philippine Car Rental, Manila Rental Cars, Sunshine Transportation / Car Rental.

Car rentals can either be personal driven or provided with a driver. Personal driving

can only be done with an International or local driver’s license.

Transport operators, tour and travel agencies reported a total of 67,974

employees in 2009. One in every two employees was employed either in Inter-

urban bus line operation or Supporting and auxiliary activities to water transport.

Domestic air passenger and freight transport/International air passenger and

freight transport placed third with 11,372 employees or 16.7 percent. The least

number of workers was found in non-scheduled air transport with 343 or 0.5

percent.

All industries hired more men than women except for activities of tour and

travel agencies and activities of booking offices /tourist assistance activities, not

elsewhere classified. In 2009, 77.2 percent of the total employment were male

employees.

Percentage Tax on Domestic Carriers and Keepers of Garages. - Cars for

rent or hire driven by the lessee, transportation contractors, including persons who

transport passengers for hire, and other domestic carriers by land, air or water, for

the transport of passengers, except owners of bancas and owner of animal-drawn

two wheeled vehicle, and keepers of garages shall pay a tax equivalent to three

percent (3%) of their quarterly gross receipts.

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The gross receipts of common carriers derived from their incoming and

outgoing freight shall not be subjected to the local taxes imposed under Republic

Act No. 7160, otherwise known as the Local Government Code of 1991.

In computing the percentage tax, the minimum quarterly gross receipts in each

particular case is Php 3,000 in car for hire with chauffer and Php 1,800 without

chauffer. ( Bureau of Internal Revenue, Philippines)

Flyers, referrals, online advertisements, newspaper postings, partnerships with

some establishments, and bidding/proposals are some known forms promotion

that car rental companies use among their targeted customers. Understandably

also, there are corresponding costs and risks associated with these forms of

promotional strategies.

The common service types when hiring vehicle include “cars with driver” and

“cars without driver” (Car only). Choices of car for hire in the NCR are cars and

vans.

Theoretical Framework

Nowadays, one of the modern scholars who studied this matter in depth was

Edgar Morin. This French philosopher considers that cars presuppose further

comfort and security at time of moving from one point to another. From this angle,

car’s invention reduced notably the distances between cities, allowing drivers to

save many time and efforts. In consequence, in larger towns the concentration of

vehicles produces paradoxically negative effects such as traffic jams, injuries

derived from accidents as well as pollution. From Morin’s point of view, the
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automobile is perceived by people as something that emulates the bondage with

their modern society which is linked to the needs of conquest or seduction as an

alternative form of reinforcing the self-esteem and masculinity (Morin, 1995).

On the other hand, there are a lot of logical arguments and empirical

evidences to advance the hypothesis that the normal time-span for essentially

modifying the value of commodities is the business cycle, from one crises of over-

production (recession) to the next one. In the area of rental, the researcher used

Marx’s Theory of Rent.

Marx’s theory states that before, technological progress and (or) better (more

’rational’) labour organization etc. determines more than marginal change (in

general: decline) in the value of a commodity, and the crisis eliminates less

efficient firms, there will be a coexistence of firms with various ’individual values’

of a given commodity in a given branch of output, even assuming a single market

price. So, in his step-for-step approach towards explaining the immediate

phenomena (facts of economic life) like prices and profits, by their essence, Marx

introduces at this point of his analysis a new mediating concept, that of market

value. The market value of a commodity is the ’individual value’ of the firm, or a

group of firms, in a given branch of production, around which, the market price will

fluctuate. That ’market value’ is not necessarily the mathematical (weighted)

average of labour expenditure of all firms of that branch. It can be below, equal or

above that average, for a certain period (generally less than the duration of the

business cycle, at least under ’free competition’), according to whether social

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demand is saturated, just covered or to an important extent not covered by

current output plus existing stocks. In these three cases respectively, the more

(most) efficient firms, the firms of average efficiency, or even firms with labour

productivity below average, will determine the market value of that given

commodity. (www.internationalviewpoint.org).

From the vantage point of business, car leasing should be able to segment a

defined market, target a definite and regular clientele, and position the minds of

patrons to the merits of service offered. These are components that comprise what

is termed as strategic marketing.

Kotler elaborates that strategic marketing is concerned about efforts,

opportunities and resistance in terms of rendering services and delivering value

satisfaction to customers. The price of the service is only one side of the coin. The

other is the patronage in terms of value, use and function for renting a car.

The “Flat-Rental” Puzzle suggests that rental car prices should not be flat. The

intuition for this result is quite simple: it is because of a combination of

maintenance costs that increase with the age or odometer of the vehicle and

consumer preferences for newer cars. In equilibrium, both rental costs and

secondary market prices for autos must decline in order to induce consumers to

buy or rent older cars instead of newer ones.

For all these reasons, we do not view the lemons problem as the most

promising avenue to explain the flat-rental puzzle. However, if rental companies do

succeed in maintaining their rental cars in top condition, and if consumers are
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slightly indifferent in choosing between a new car and a clean, well maintained

used car, and if older cars are no more expensive to maintain than newer ones,

then Rust’s (1985) theory does imply flat rental costs. However, even in this

scenario, there is still a puzzle as to why car rental companies replace their

vehicles as early as they do.

Charles Cooley Theory of Transportation is the distribution of product among

industrial classes—to wages, interest and the questions of labor and capital

associated with these, are for the most part too remote and indirect to enter into

our inquiry. Rent is closely connected with transportation because it is a matter of

areas and distances, of place relations. I said at the beginning of the present

division of the subject that the study of the economic relations of transportation

was nearly equivalent to the study of society in its place relations; and this notion

holds good at the present point.

Rent would exist as a result of transportation alone, were there no differences

in the fertility of soils. That is to say, varying productivity, a fundamental conception

of the Ricardian theory, is not indispensable to the existence of rent.

Lastly, Bell elaborates what marketing effort is all about. It is to develop a

good service, an effort to obtain effective distribution, an effort to persuade

potential customers and thereby promote the sale of the service, and an effort to

price the service profitably.

Thus, the success of the car rental business depends on its marketing and

the services provided to customers/clients. Through strategic marketing, the

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ultimate sales success is always the net results of efforts applied to opportunity

minus the effect of marketing resistance (Bell, 2005).

Conceptual Framework

The rental car industries as well as other industries within the travel market are

challenged with developing a marketing strategy that will maximize profits for the

firm.

In this study, the researcher considered the use of the 4Ps marketing mix

framework (Constantinides, 2006:407). Since Jerome McCarthy (1964) reduced

Neil Borden‟s (1964) twelve identified controllable marketing elements to four,

product, price, place and promotion, practitioners and academics promptly

embraced the mix paradigm that soon became the prevalent and indispensable

element of marketing theory and operational marketing management (Grönroos,

1994:13).

This study pertained to the effectiveness of the marketing strategy of the car

rental business companies and its effectiveness to the car rental customers or

clients.

In the following research paradigm (Figure 1), the relationship and the flow of:

data/information (Input) and the sources; and processes to be undertaken

(Process) during the conduct of the study are shown; to be able to identify the the

appropriate marketing strategies of car rental operations within NCR (Output). The

researcher used the Input-Process-Model which was introduced by McGrath

(1964).
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The different strategies on the marketing mix (product, price, place and

promotion) and the profile of the car rental business as to form of their business

organization, number of years in operation, classification of the vehicles and the

number of vehicles for rent were treated as the input variables. Car rental business

customers and clients profile as to age, gender, occupation, purpose of trip,

frequency of rental, vehicle preference, transmission preference and service

preference were also included in the input variables. The level of effectiveness of

marketing strategies of the car rental business as to product, price, place and

promotion with the level of satisfaction of the car rental customers/clients and the

problems encountered by the car rental business owners/operators/ managers and

car rental customers/clients were also the components of input variables.

The process constitutes the assessment of the effectiveness and the level of

satisfaction being documented and summarized so as to come up with the

analysis, interpretation, presentation of results and evaluation of the marketing

strategies of the car rental companies and its effectiveness to car rental

customers/clients level of satisfaction.

The output is the rate of effectiveness on the marketing strategies of the car

rental business owners/operators/managers and the level of satisfaction of the

customers/clients on the services of the car rental business companies. Also

included in the output are the problems encountered by the car rental business

owners/operators/managers and customers/clients. Furthermore, problems and

recommendations are also expected to surface in the process. From these

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recommendations, proposed better services can be reached to yield an

improvement of the car rental business owners/operators/managers in their

marketing and operations.

Input Process Output

Profile of the Respondents

Respondent Car Rental Company

 Form of Business organization

 Number of years of operation Level of
 Number of units of vehicles for effectiveness of
rent the marketing
strategies of the
Respondent Car Rental
Customers/clients car assessed
 Age
 the
Of Gender Level of
 Occupation
satisfaction of the
 Purpose of trip Assessment,
 Frequency of rental customers/ clients
analysis,
 Vehicle preference on the services of
presentation of
 Transmission preference the car rental
 Service preference data gathered
business
through
assessed
Aspects of the level of satisfaction of the questionnaire
customers/clients and level of
effectiveness of the marketing strategies Problems
on the services of the car rental business encountered by
in terms of:
car rental
 Product
 Price companies and
 Place customers/ clients
 Promotion identified
Problems encountered by the car rental
companies when they are grouped
Improved services
according to their profile

Problems encountered by the car rental

customers/clients on the services of the
car rental company when they are
grouped according to their profile

Feedback

Figure1. Research Paradigm

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Statement of the Problem

This study sought to determine the level of effectiveness of the marketing

strategies and customers/ clients’ level of satisfaction on the car rental business in

the National Capital Region as bases for proposed better services.

Specifically, it investigated the following sub-problems.

1. What is the profile of the respondents in terms of the following variables:

1.1. Respondent car rental companies

1.1.1. form of business organization

1.1.2. number of years of operation

1.1.3. number of units of vehicles for rent

1.2. Respondent car rental customers/clients

1.2.1. age

1.2.2. gender

1.2.3. occupation

1.2.4. purpose of trip

1.2.5. frequency of rental

1.2.6. vehicle preference

1.2.7. transmission preference

1.2.8. service preference

2. What is the level of satisfaction of the customers/clients on the services of

the car rental business as assessed by the respondents?

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3. Is there a significant difference in the level of satisfaction of the customers/

clients on the services of the car rental companies as assessed by the

respondents when they are grouped according to their profile?

4. What is the level of effectiveness of the marketing strategies in terms of the

following aspects?

4.1. product

4.2. price

4.3. place

4.4. promotion

5. Is there a significant difference in the level of effectiveness of the marketing

strategies of the car rental companies as assessed by the respondents when they

are grouped according to their profile?

6. What are the problems encountered by the car rental companies when they

are grouped according to their profile?

7. What are the problems encountered by the customers/clients on the

services of the car rental company when they are grouped according to their

profile?

Hypotheses

The following hypotheses were tested at a 0.05 margin of error:

1. There is no significant difference on the level of satisfaction of the

customers/clients on the services of the car rental business as assessed by the

respondents when they are grouped according to their profile.

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2. There is no significant difference on the level of effectiveness of the

marketing strategies of the car rental business as assessed by the respondents

when they are grouped according to their profile.

Scope and Limitations of the Study

This study specifically covered the profiling of the registered car rental industry

in the National Capital Region and the existing fleets they have, servicing various

types of travelers to different segments and sectors of destination. These

companies are registered in the Department of Tourism (DOT) and the Department

of Transportation and Communication (DOTC). Awareness on the current

promotional strategies and marketing schemes is the main focus and not on the

entire investment issues or acquisition aspect of the vehicles and the entire

business.

The choice of the respondent customers/clients are car renters in their

respective car rental companies, some of them are travelers coming in and out of

the country, tourists and local individual renters to take part on the measurement of

the level of their satisfaction on the services provided by the respondent-car rental

companies.

The strategies evaluated under the 4P’s of marketing (product, price, place,

promotion) were based from the results of the preliminary interviews and answered

questionnaires that researcher gathered during the course of data gathering and

other secondary sources that the researcher painstakingly analyzed, consolidated

and formulated.
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For that aspect of undisclosed benchmark, interviews and mystery client may

be a form of help. Maintenance of vehicles or policies on personnel matters shall

not be given much emphasis. What may be more prevalent part of the scope are

the policies relating to the conduct of sales or renting out of the vehicles and the

assurance that the business will not suffer in the long run.

Significance of the Study

Rationalizing the significance of the study may become self-serving by merely

justifying the need to fulfill an academic requirement. However, failure to point out

the merits of the research work makes one remiss of her responsibility to cite its

contributions to some sectors.

Rent-A-Car Business. An economic component of the transport industry and

a sub-sector of tourism development will benefit from the findings of the research.

The car leasing firms – local and national – shall be provided with a sort of eye-

openers focused on the strategies for customers’ satisfaction and retention.

Rent-A-Car Competitors. What competitors apply and resort may likewise

be adopted for competitive advantage, in targeting a defined and specific market

by overcoming resistances which rival firms pursue could be a basis for altering,

innovating or improving their own strategies to their respective target market.

Consequently, this study may provide varied perspective that may cover similar

lines of concentration or provide one for benchmarking. It may also just give a

reality check or mirror current practices and situation.

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Prospective clients. Who want to avail themselves of the cars for rent will be

informed about the actual operations of these firms relating to marketing. In turn,

these clients will be fully aware of the marketing strategies and services provided

and be in a better position to decide which one can best serve their needs and

purposes in renting cars based on rates, classifications, models, package

arrangements and other considerations.

Would-be-Entrepreneurs. They may get a concept of what they are heading

to or planning to venture in with the different options and alternatives unfolded. It

may also serve as a point of reference pertaining to some parallelism of venture, if

not exactly similar.

Academicians and Professionals. This study may become another form of

case study and/or a source of enlightenment or debate for practitioners or even a

model for testing/validation in their respective areas of concentration.

Students. This may serve as a model worth studying to satisfy

inquisitiveness, comply with some homework references, mode of enlightenment,

or as a medium for new learning.

Socially and economically, the output of this study is expected to provide an

outcome that may help strengthen economic sustainability of car rental business,

cater to the needs of various travelers in the locality, including but not limited to

providing choices for the appropriate expansion, positioning, and survival of

existing car rental businesses.

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Definition of Terms

For better understanding of the terms used in this study, the following

definitions are provided conceptually.

Asian Utility Vehicle/Sport Utility Vehicle. It is a four-wheel-drive vehicle

used for travel but most suitable for rough terrain. (NSO Manila,Phils.,2009)

Car Rental. It is group of firms letting for hire self-drive vehicles but also later

expanded into vehicles with drivers, serving various traveler types and

transportation needs other than public means. (Ekiz, 2008)

Car Renters. These are individuals or group of individuals who pay for the

rent, accept and understand the agreement stipulated in the car rental contract.

(Ekiz, 2008)

Collision Damage Waiver. It is a provision in car rental contracts in which

the renter is charged an extra fee for coverage and in turn the rental company

agrees to waive its right to recoup losses due to damage that has been caused to

the vehicle. (Kemwel Cheap Car Rental)

Entrepreneurs. These are individuals who undertake to start an enterprise

usually assuming full control and risk. (Navarro,2002)

Global Positioning System (GPS). It is a system that uses a group of

satellites to send signals to a receiver, it then calculates the amount of time it took

to receive the signal, thereby determining the latitude and longitude coordinates. It

then overlays the point of reference onto a mapping program, which then displays

on the screen. (Kemwell Cheap Car Rental)

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 24

Marketing Strategy. It is an organization's strategy that combines all of its

marketing goals into one comprehensive plan in order to achieve the maximum

profit potential and sustain the business. (Lao, 2009)

Marketing. It is the activity, set of institutions, and processes for creating,

communicating, delivering, and exchanging offerings that have value for

customers, clients, partners, and society at large. (American Marketing

Association, 2008)

Marketing Concept is a management orientation that focuses on identifying

and satisfying consumer needs in order to assure the organization’s long-term

profitability objectives. (Lao,2009)

Marketing Process is a series of steps that entail both careful thought

(planning) and action (executing). (Lao,2009)

Marketing Tools is the marketing mix consisting of the factors that can be

manipulated and used together to create a desired response in the marketplace.

(Lao,2009)

On-line booking/reservation is a reservation through a website using credit

card for payment per transaction done. (NSO Manila,Phils.,2009)

Place is concerned with various methods of transporting and storing goods,

and then making them available for the customer. (Mc Carthy,2010)

Price is the one, which creates sales revenue. The price of an item is clearly

an important determinant of the value of sales made. It is determined by the

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 25

discovery of what customers perceive is the value of the item on sale. (Mc Carthy,

2010)

Product refers to tangible, physical products as well as services (i.e. brand

name, functionality, styling, quality, safety, packaging, repairs and support,

warranty, accessories and services). (Mc Carthy, 2010)

Promotion is an all forms of communication other than advertising that call

attention to products and services by adding extra values toward the purchase.

Includes temporary discounts, allowances, premium offers, coupons, contests,

sweepstakes, etc. (Mc Carthy, 2010)

Sedan is a four-door vehicle with a maximum seating capacity of five

including driver. (NSO Manila,Phils.,2009)

Service Type is the product offerings of car rental business depending on the

type of vehicle and with driver or without driver. (Kemwel Cheap Car Rental)

Tourism refers to activities of foreign and domestic visitors traveling to and

staying in places outside their usual environment for not more than one continuous

year for leisure, business and other purposes not related to employment with pay

from within the place visited. (Ekiz, 2008)

Tourism activities encompass that entire foreign and domestic visitors do for

a trip or while on a trip. It is not restricted to what could be considered as "typical"

tourism activities such as sightseeing, sunbathing, visiting site, etc. From an

economic point of view, the basic activity of foreign and domestic visitors is
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 26

consumption, that is, the acquisition of consumption goods and services to satisfy

individual or collective needs and wants. (Ekiz, 2008)

Tourist is a person traveling to a place, that is his/her not usual environment

for less than 12 months and whose main purpose of the trip does not involve

economic activity remunerated within the place visited. (Ekiz, 2008)

Travel Agency is an establishment of travel-related products and services to

customers, on behalf of suppliers, such as airlines, car rentals, cruise lines, hotels,

railways, sightseeing tours and package holidays that combine several products.

(NSO Manila,Phils.,2009)

Traveler Type. It is the group or typology of travelers like domestic or

international travelers further broken down to as: business (individual or corporate)

traveler, leisure/tourist traveler, educational/convention/conference traveler, and

other related groups with collective interests. (Ekiz, 2008)

Van is a vehicle with a minimum of six to a maximum of 15 seating capacity.

(NSO Manila,Phils.,2009)

Vehicle Type is the type of vehicle whether it is a van, car, with consideration

of other identifying factors like size, cost, fuel-type, luxury factor, etc. (Ekiz, 2008)

World Tourism Organization is the United Nations agency responsible for

the promotion of responsible, sustainable and universally accessible tourism. (Ekiz,

2008)
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 27

Chapter 2

REVIEW OF RELATED LITERATURE AND STUDIES

This chapter presents the review of related literature, particularly the theories

and concepts to highlight the sub problems in Chapter 1. This presents various

foreign and local literature and studies that the researcher found relevant to this

study.

Foreign Literature

Based on the contribution of Harvey (2010), “a car rental company hires cars

out to customers for temporary periods of time, generally from a few days to a few

weeks. Reasons for renting cars are generally include the need for transportation

while away from home on vacation or business, or the need for alternative

transportation following an accident or while a vehicle is being repaired. In a prime

location, such as an airport, car rental companies can be very lucrative. Most rental

companies are part of large chains, however, that are able to competitively price

their rentals due to the high volume of business.”

The starting of car rental business as updated by Harvey (2010) have

corresponding challenging instructions as follows: complete a feasibility by

considering location and service type; ensure accessibility and security; plan fleet

acquisition; standardize vehicles based on size, cost, power, luxury factor, chassis

type, transmission and drive, fuel type; design a rental contract; check insurance

liabilities; hire customer service staff, maintenance staff or auto repair shop; and

network/market your business (www.ehow.com, 2010).

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 28

The car rental market has been struggling, despite an improving economy

and increased travel. Prices have held steady, as many US travellers view car

rental as a commodity, and use opaque travel retail websites such as Priceline to

choose the lowest cost car rental option. After three years in a row of fleet

reductions in response to the recession, the number of cars increased by 4% in

2011. Consumers had been complaining of dirty cars, high mileage cars, longer

queues, fewer model choices, and, in some cases, no available vehicles.

The US car rental market is expected to see moderate growth in the forecast

period, as the economy continues to recover and Americans resume business

and leisure travel activities. The number of transactions is expected to increase by

a CAGR of 2%, the same growth as expected in constant value terms over the

forecast period. Leisure car rental is expected to remain the largest category, with

constant value sales reaching US$9.0 billion by 2016.

After a year of solid growth in 2010 which saw car rental value sales

increasing by 3%, growth in car rental in Australia slowed only marginally in 2011

as the category increased by 3% to A$1.2 billion. The failure of car rental to post

higher growth in 2011 was due to the decline in domestic travel and tourism,

particularly with regards to domestic leisure tourism and, in particular, with

regards to leisure tourism in remote rural areas, where leisure tourists are more

likely to require car rental. Much of the success of car rental in Australia over the

review period was due to the ongoing rise in the influence of low-cost carriers,

which has led to a shift away from domestic Australian tourists taking their own
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 29

vehicles on road trips towards holidays which include air travel, requiring travellers

to rent a car at their destination, so-called ‘fly-drive’ holidays. However, the

influence of the rise of low-cost carriers peaked in 2007 and as Australian

consumers are now increasingly travelling overseas for their leisure holidays, no

significant factor has developed to drive demand for car rental. With domestic

travel and tourism in Australia increasingly geared towards short weekend

getaways, for which travellers generally make use of their own vehicles for

transportation, demand for car rental in Australia continues to fade. (travel and

tourism).

In Nicky LaMarco’s eHow contribution (retrieved 2011), he mentioned--“With

airline prices soaring through the roof, more people than ever are turning to the

rental car industry to help with their transportation needs. That means this could

be a very lucrative area for a would-be entrepreneur. However, you can't just

wake up one morning and open up such a business. You need to do some careful

planning and preparing. The nicest part of such a business is that you don't

necessarily need a lot of capital to get started.” “With just a couple of cars, a

website and a phone number, you can get your business off the ground,

especially if you follow steps similar to what Harvey (2010) had identified.

Another literature which discussed the basics of what is involved in running a

Car Rental business stated that to efficiently run the business, one must be willing

to work on a flexible schedule that may require coming in on weekends or holidays

and working plenty of overtime (www.atouchofbusiness.com).

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 30

Other information as cited from Pros of Running A Car Rental Business

mentioned that one can make good money providing a car rental service to people

in need; that there will also always be a market for renting cars; that it’s a relatively

easy start up; and that it’s a much needed and widely used service

(www.atouchofbusiness.com).

Also mentioned in the same source are the Cons of Running a Car Rental

Business such as: (1) investor will be responsible for the maintenance of all of the

cars, keeping them in perfect order; (2) he will also be responsible for making sure

that people take good care of the cars and pay their bills. This can end up being a

hassle sometimes; (3) there also may be certain times of the year which are slower

than the others, giving the investor less business; (4) and that it is a highly

competitive industry.

The equipment necessary to run a car rental business as identified in the

online source include maintaining a website, regular office equipment, selection of

cars appropriate for the type of car rental business being run, safe parking area,

preferably a guarded parking garage and security system.

Finally, the source also provided inputs on skills necessary for running a car

business which are basic math skills; English proficiency and communication skills,

the ability to multitask, listening skills, problem-solving skills, decision making skills,

ability to manage, train and supervise employees, sales skills, professional

appearance, the ability to operate many different vehicle types and basic computer

skills (www.atouchofbusiness.com).
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 31

Also, the insurance matters of vehicles were discussed and provided online by

Kanobi (2010). According to him if one intends to start a rental car business he

needs to find an insurance provider. Rental car businesses need small business

insurance as well as a way to provide clients the option of buying extra insurance

for vehicles they will drive. The entrepreneur must make sure that all of his

company policies are intact and well thought out before comparing insurance

options. He should also estimate the costs and profit for your business as well as

the rates that you intend to charge customers.

Certain instructions given by Kanobi (2010) which were also listed include (1)

writing a list of all the cars in rental fleet which include model, year and license

plate number, as well as minor or major damage of any vehicles; (2) making copies

of documents such as a business license, tax returns and registration for each of

vehicles. Insurance companies will need to verify all information with proof (3)

calling insurance companies to request a quote for the rental car business. Most

insurance companies provide small business insurance services. If you have a

very large rental fleet with many employees, it may be harder to find insurance; (4)

comparing offered rates and coverage; and (5) selecting of an insurance company

and set up a policy to sell temporary insurance to rental car clients.

This comes in handy since rental car companies typically offer a number of

add-on insurance options to renters, such as personal liability or collision

insurance. Most rental car companies in the US charge $10 to $30 a day for these
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 32

options. Working with an insurance specialist to create this system is also

recommended. (www.ehow.com)

On the aspect of business plan outline, marketing was mentioned as essential

part. The plan has the following sub-sections: (a) an executive summary- overview

of most important points of business plan and selling the business; (b) company

description- mission statement, company overview, industry briefing, corporate

history, legal structure; (c) products and services description, R and D, pricing,

delivery, production; (d) marketing and sales- market definition, customer profile,

competitive and SWOT analysis, strategy, sales and promotion; (e) operations-

legal and government issues, staffing, suppliers, alliances, policies, risk

assessment, facilities, location, insurance, milestones; (f) management key job

descriptions, responsibilities, management team, organizational chart, advisors;

and (g) financials such as profit and loss, cash flow, balance sheet, financing, debt

schedule, use of funds and assumptions, break-even analysis (www.squidoo.com).

On the other hand, the customer functions include marketing, sales and field

service (Lockamy and Cox, 1994). Competitive edges are said to be product or

service characteristics for which the firm strives to achieve advantages in a given

market. APICS Dictionary (1992) defines competitive edges on which world-class

companies can compete and these are: piece, quality, lead time, due date

performance, product, product flexibility, field service, innovation, and product

introduction responsiveness (Lockamy and Cox, 1994).

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 33

In an article about service companies entitled “Focus or Falter” (Harvard

Business Review in Soundview Executive Book Summaries [SEBS], 1994), it was

mentioned that if one provides too little or the wrong kind of service to customers,

he’ll lose them. If he provides too much service, he’ll go broke or price himself out

of the market. Further, it stated that to create a service strategy, segment the

customers to be served. The goal is to isolate a homogeneous set of customers

you can serve at a profit.

Another source says that “customer-intimate companies don’t try to offer most

advanced products. They are more interested in having a broad range of products

available so that customers can find the product that best fits their needs (Treacy

and Wiersema in SEBS, 1994).

Solomon and Stuart (2000) differentiated marketing, marketing mix, and

marketing as a strategy/concept/system, and marketing’s role in an organization.

British retailer, Marks and Spencer, is a very demanding customer—yet one

that is prized by its suppliers. One reason is that the firm respects its suppliers’

margins in negotiations. Its state-of-the-art systems also help suppliers to stay on

the cutting edge of production and quality practices (Lewis in SEBS, 1995).

Customer-supplier relationships are much more than “scratch my back and I’ll

scratch yours”. Fluctuations in demand, competition among suppliers, and risks in

innovations are just some of the variables that must be managed carefully in each

relationship (Lewis in SEBS, 1995).

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 34

Lewis doesn’t gloss over the difficulties of partnerships. By using detailed

examples, he shows specifically what can be achieved through customer-supplier

partnerships and how to reach those goals (Lewis in SEBS, 1995). He also

identified four ways by which customers can help suppliers excel. The main points

cited by Lewis (1995) are: support customer growth; minimize disruptions; respect

their independence; and avoid damage.

In his book Sales Superstars, Forward (1995) mentioned about learning from

the suppliers. That whether they sell homes, computers, or planes, sales

superstars sound alike when they discuss their methods and values. He found that

most agree on these statements: Build relationships with customers before trying

to sell to them; don’t sell to customers, instead, solve their problems; be likable,

non-aggressive, and service-oriented, so customers enjoy the relationship; be

persistent but not annoying; see yourself as self-employed, with success or failure

in your hands; and know that long hours are the price of success.

In the New Competitor Intelligence book (Fuld in SEBS, 1995), it was stated

that the important work of a manager is not only in terms of strategizing,

organizing, and motivating, but is also keeping tabs on competitors and industry.

To make decisions, Fuld said, one needs intelligence as well as information

analyzed and distilled.

Fuld (1995) further stressed that one can find out-- legally and ethically—how

a competitor can make an item more cheaply than he can, what its long-term

strategy is, when it intends to introduce a new product, and with what features and
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 35

many more. According to him, whenever money is exchanged, information opens

mental doors. If one wants to know the layout of a competitor’s factory, he should

go to the building inspection department at City Hall. Or if on wants to know how

much product a competitor is shipping, he has to find out who makes its boxes and

ferret information from the box maker. (Fuld in SEBS, 1995). Moreover, it was

stated that as any chess player knows, an entrepreneur’s next move depends in

part on what his opponent does. This is about uncovering long-term strategy.

In terms of business strategy and positioning, McKinsey & Co., Inc. identified

six specific levers of simplification in business such as: (1) Product and Customer

range—trying not to make everything for everyone and dropping marginal

products—and marginal customers; (2) Outsourcing of Parts—buying standard

parts, making unique parts in-house, and consolidating suppliers; (3) Product

Development – integrating the process. Make sure sales and production staff work

with designers; (4) Logistics- Group functions (design, manufacturing, & sales) in

one location; (5) Automation-simplifying operations before bringing in the

computers as computerized complexity can be a waste of money; and (6)

Decentralized organization—Dissolving functional separations and letting cross-

functional product divisions make the decisions (Rommel, Kluge, Kempis,

Diedrichs, & Bruck, 1995).

The Allen-Bradley Electronic Manufacturing, people believed that machines,

no matter how sophisticated, will always need good people. This was mentioned
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 36

in the success paths that revived manufacturing entitled “Making it in America”

(Jasinowski & Hamrin in SEBS, 1995).

Also, there are pertinent Human Resource forms that are applicable also to

employees especially if a business opted to hire staff and drivers. Examples of the

forms and documentation as well as processing are part of the The Art of

Attracting, Motivating, and Keeping People: Personnel Policies (Kheng-Hor, 1997).

If there are documentations and formats applicable to staff, there are also

underlying formats of the process monitoring and reporting like the Customer

Tracking System, and Systems Design-Report Formats (Valacich, George, &

Hoffer, 2001).

The Evolution of Marketing Concept is identified as the product orientation--a

management philosophy that emphasizes the most efficient ways to produce and

distribute products, the selling orientation--emphasizes aggressive sales practices

and marketing is seen strictly as a sales function, the consumer orientation--

focuses on ways to satisfy customers’ needs and wants, and new era orientation--

marketing decision-making means a devotion to excellence in designing and

producing products that benefit the customer plus the firm’s employees,

shareholders, and fellow citizens (Solomon and Stuart, 2000).

In terms of operations management, samples of allocation models,

scheduling/queuing models, and forecasting models are found to be useful (Turban

& Meredith, 1986). While the Accounting for unincorporated businesses and

Accounting concept of Depreciation as tackled by Flamholtz, Diamond &

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 37

Flamholtz (1986) are also essential concepts needed in the management of the

operations.

From the USA Today issue (April 2010), frequent traveler Gary Bellaire says he

received two rental cars from Hertz last year that each had about 50,000 miles on

the odometer. “This would have been unheard of just a few years ago,” said

Bellaire, of Rowlett, TX, who works in the real-estate industry. And he would know.

He rented vehicles more than 35 times during the past four years.

Aging cars with tens of thousands of miles on them—instead of around

10,000—is just one of the effects the recession has had on Hertz and other big

car-rental companies. A survey of more than 1,300 business travelers who

volunteer information for USA Today’s Road Warrior Panel finds other customer

complaints: dirtier cars, less service, longer lines and fewer choices of models.

Although customers may not see it yet, car-rental companies are showing signs

of emerging from the worst of the economic downturn. They’ve weathered a big

drop in revenue, automaker bankruptcies at General Motors and Chrysler, and a

recall and grounding of some Toyota vehicles in their fleets.

On an article of immeasurable quality, John Urry (2007) addresses the concept

of mobility and culture applied on the field of displacement, acculturation and

migration. From the poststructuralist point of view, author realizes that today 600

millions of arrivals are registered annually whereas in 1950 that number was only

for 25 millions, an insignificant cipher whether we compare tourist and migrant

displacements with evolution of transport in 50 years.

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 38

Local Literature

Car rental value sales grew 12% in 2011, lower than the previous year’s

performance of 17% as a result of lower growth of tourism flows inbound arrivals.

This was due to lower GDP growth in most countries and regions in 2011

compared to 2010 due to the earthquake and tsunami in Japan, political unrest in

the Middle East and the debt crisis in Europe. The successive oil price increases in

the first half of 2011 led tourists to choose low fuel-consuming cars which directly

affected car rental revenues (Travel and Tourism, 2012).

Asia Travel and Tourism: Promise of Long-term Growth. Travel and tourism in

Asia recovered well from the world recession, due to a continued reliance on intra-

regional visitors and domestic tourism growth. Low cost carriers are revitalizing

transportation across the region and international hotel chains are expanding

dynamically. China and India, the region’s giants in terms of population and

economic growth, are increasingly sought-after source countries, as disposable

incomes rise and a growing number of consumers are keen to travel.

For convenience and safety traveling in the Philippines, Asia Travel has tied

up with DOT-accredited, Gold Runner Tours and Travel; Transportation Services,

Inc. to handle all airport-hotel transportation needs. Gold Runner Tours and Travel

Transportation Services is located at the arrival lobby of the Ninoy Aquino

International Airport under "HOTEL COUNTER " and is run by the Hotels and

Restaurants Association of the Philippines (HRAP).

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 39

“Never enter unfamiliar terrain” said Socorro Ramos of the National

Bookstore (Go & Escareal-Go, 2010). There are 3 Cs of Marketing as quoted by

Go and Escarel-Go (2010) and these are Customers, Competition, and Company.

They also specified that the company’s relative strengths are critical to strategy

formulation with the consideration of competitors’ weaknesses and the customer’s

needs and wants.

Borbon advances the opinion that with the motor vehicle-renting-service just

entering its growth stage in the product life cycle, some efforts appear appropriate

to estimate the potential of the different market segments and to choose some

target market segments for development. In her report, she concludes that first,

inaccurate feedback from the market leads to inefficient fleet planning and

therefore unrealistic quotas. Secondly, the absence of quality points for service,

car performance and delivery leads to customer dissatisfaction, compounded by

the fact that deficiency in performance of one division is settled by another – in this

case, the depot and sales, respectively. Thirdly, as this set-up was only efficient,

perhaps during the start of operation when the car fleet was reasonably small and

the total manpower was also few compared to the present, the company should

definitely adjust its organization to cope with the needs and demand of the present

situation.

Borbon discusses the basic need, the specific uses, utility of the approach,

quality points, and standard of quality of the rental service offered by AVIS which

the current study is not bent on focusing as the main thrust. Although, the previous
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 40

study partly dealt with the market potential and target segments such as the

foreign visitors, institutional market, domestic individual market, and international

reservations, it did not rationalize on the identification of marketing opportunities by

segmentation on overcoming marketing resistance.

The literature reviewed were mostly online contact details and advertisements

only. If ever there is any, the presence and availability of it is believed to be not in

public documents or maybe not yet published online as they are inherent and

regarded confidential among owners or operators.

Foreign Studies

In the USA, Avis launched the 'Avis Cares' program in 1989 to improve

customer satisfaction levels. The program primarily aimed at ensuring the safety of

customers as well as of the employee-owners. It included offering services that

would help Avis customers enjoy a 'safe and stress free' trip to their destinations

(www.icmrindia.org/casestudies, 2003).

The services offered by Avis were local safety trip sheet (also known as the

Avis Cares Driving Information Card), child safety and booster seats, Avis vehicle

operating guide, route navigator directions and other local maps, weather fax,

wireless phones and Avis quick city guide (refer to table II for details). Throughout

the early 1990s, Avis kept on improving the Avis Cares program by adding more

features to it. The company introduced the Avis Cares concierge service, which

supplied information to customers about restaurants, sporting events, shows and

local events and points of contact. The company also undertook the responsibility
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 41

of arranging dinner reservations and purchasing air tickets. Customers could avail

of this service by calling an exclusive number for Avis' US customers.In February

2003, Avis, in partnership with Motorola (global leader in providing integrated

communications and embedded electronic solutions), launched the 'Avis Assist'

Navigator service.

Also made available to customers at the Dallas Fort Worth airport, 'Avis Assist'

was a phone-based navigation service that enabled customers to receive spoken

directions on a mobile hand-set with a speaker phone fitted in the car. Through this

service, customers could dial the Avis call center and find out the best route for a

destination address or request a directory search for a point of interest. The

desired route was then downloaded to the 'Avis Assist' unit in the car, which

provided turn-by-turn directions to the customer. In April 2003, The Canadian

Professional Sales Association (CPSA) named Avis the '2002 Car Rental

Company of the Year' in recognition of the exceptional services it provided to both

business and leisure travelers. (www.icmrinda.org/casestudies,2003)

To support its marketing initiatives, Avis got involved in various humanitarian

services. Through the 'Avis Cares about Community' program it launched the

National Soccer Ball Donation Campaign.

This initiative was launched in August 2002 to support the Special Olympics

programs and athletes. Avis ran this campaign for three months (August 2002-

October 2002). As part of the campaign, Avis invited its customers to sponsor a

'We Try Harder' Avis-Special Olympics branded soccer ball (costing $ 10 including
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 42

the cost of the soccer ball and $ 2 in cash contribution to Special Olympics) that

would be sent to Special Olympics athletes. Appreciating this gesture, the Director

for corporate development, Special Olympics North America, Libby Andrews, said,

"Avis has created a unique formula for allowing its customers to show their support

of Special Olympics programs. It is very exciting when corporations like Avis

recognize the importance of supporting the talents of Special Olympics athletes..."

(www.icmrindia.org/casestudies, 2003).

After its early 1998 launch and thousands of dollars later, Payless Car

Rental‘s corporate website had experienced very little traffic. The original website

address was changed from PaylessCar.com to www.800-PAYLESS.com, to

reemphasize their toll-free consumer reservations number. As the popularity of the

World Wide Web grew, the company website was at a standstill and took a

backseat to the company‘s ambitious growth plans to double the number of its

franchises by 2003 (smcsoftware.com/Internet-Marketing-Case-Study 2003).

The first task was to obtain a domain name with lasting impression. To do

business on the web, it was important to choose an obvious domain name that is

easy to remember. Thus, PaylessCarRental.com was secured. A complete website

overhaul was in order which included a new site layout and logical navigation

needed to drive sales. The new site introduced a location directory, rental policies,

fleet information, online reservations and a little bit of company history.

After thorough keyword research, the site was optimized for search engines

and directories. Link popularity was strategically attained and banner advertising
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 43

complimented those efforts to build targeted consumer awareness in popular travel

portals.

Today, PaylessCarRental.com receives over 250,000 unique visitors per

month. That translates to nineteen percent of its revenues, and growing! Payless

Car Rental is seriously focused on resources that will drive visitors to the site and

continues to reap the benefits of their decision to bring their Internet Marketing

efforts in-house. To further enhance its new business exposure, Payless Car

Rental set up marketing agreements with popular travel-related web sites

(smcsoftware.com/Internet-Marketing-Case-Study,2003).

Payless Car Rental was provided with an autonomous, cost-effective

solution through an Internet Marketing strategy. The plan focused on increased

efficiency, agility and control that resulted in substantial cost savings and return on

investment. "Combined with the revenue generated from travel web sites, sixty

percent of our business is Internet driven." says Payless’ spokesperson. "That

speaks for itself. And our brand name helps. Payless has the perfect name for the

Internet. No one goes on the Internet to spend more."

For Payless Car Rental, the corporate website along with its new Internet-

driven culture has become a necessary tool that is an enabler of open information

and client interaction. Now, Payless Car Rental is focused on building consumer

awareness, excelling in customer service and capitalizing on their compelling

brand name. (smcsoftware.com/Internet-Marketing-Case-Study, 2003).

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 44

In his report, Thomson (2011) wrote about the car rental in the US. He said

that “Going the extra mile: The global recession put the brakes on the industry, but

a revival in demand for air travel will stimulate growth again. Rising personal

incomes and more generous corporate travel budgets will underpin growth from

this market; however, rising fuel prices and the corresponding increase in ticket

prices threaten that forecast. Still, the industry's future will be brighter, as firms

implement new strategies.”

Companies in this industry rent or lease passenger cars to customers. Car

rentals typically last a short time (30 days or fewer) while leasing agreements are

for longer (12 months or more). The industry excludes the rental or leasing of cars

with drivers (www.fastmr.com, 2011).

“What a difference a year makes,” said Betsy Snyder, a credit analyst for

Standard & Poor’s, which in recent months has raised the credit ratings of Hertz,

Avis Budget Group and Dollar Thrifty Automotive Group. It’s a reversal from the

beginning of 2009, when Snyder says a “perfect storm” struck the auto-rental

industry (http://asq.org/qualitynews/, 2010).

A decline in air travel during the recession reduced demand for rental vehicles

and lowered rental-car rates. Auto-rental fleets were too big, and prices to sell

used cars were low. In addition, Standard and Poor’s believed rental-car

companies would have difficulty refinancing debt “in the constrained capital

markets.” But the following several positive developments for the companies

ensued:
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 45

 They substantially cut costs, shrank fleets, reduced and successfully

refinanced debt, and raised rental rates for leisure travelers, Snyder says. Hertz

cut costs $760 million last year and $1.2 billion during the past three years, the

company says. Hertz also refinanced $3.2 billion of U.S. fleet debt last year. Avis

Budget Group says the average price of a rental increased about $3 a day last

year.

 Prices for used cars rose, enabling car-rental companies to shed older

vehicles and buy newer ones. Hertz spokeswoman Paula Rivera says the

company bought 80,000 new cars in last year’s fourth quarter and continues to buy

more this year. The average vehicle in Hertz’s fleet last year had 15,000 to 18,000

miles; she says that their aim is to get the mileage on all cars back to pre-

recession days, where cars would have, on average, anywhere from 8,000 to

12,000 miles.

 Earnings improved last year. Dollar Thrifty Automotive Group reported a profit

of $11.5 million in the fourth quarter compared with a $72.2 million loss during the

same year-earlier quarter. For all of 2009, the company had a $5 million profit,

compared with a $346.7 million loss in 2008. Snyder says the company has

benefited from cost reductions and price increases for leisure travelers, who

provide about two-thirds of the companies' revenue. Avis Budget Group lost $77

million last year, compared with $1.3 billion in 2008. Hertz reduced its loss from

$1.2 billion in 2008 to $126 million last year (http://asq.org/qualitynews/, 2010).

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 46

In Europe, EU-Rent Business has 100 branches in towns in several countries.

At each branch cars, classified by car group, are available for rental. Each branch

has a manager and booking clerks who handle rentals. Rentals are mostly by

advance reservation. It only accepts immediate, walk-in, rentals if cars are

available. A customer can have several reservations but only one car rented at a

time. The company keeps records of customers, their rentals and bad experiences

such as late return, problems with payment and damage to cars.

(www.businessrulesgroup.org/first_paper, 2001).

Top online business ideas from recent internet survey identified Car rental as

the Rank 1 mostly visited website, followed by taxes, flowers/gifts/greetings,

humor, and health care as the top 5. The study ranked the website categories by

the number of unique visitors. The rank might change from time to time. The 69%

growth from the previous month was said to be related to the growth in monthly

visitation to Paris-based European rental car company Europcar, Hertz.fr, and

Priceline subsidiary eLocationdeVoitures.fr (iipalbanjary.net/survey/, 2011)

Car rental in the US differentiate renting from leasing cars to customers. Car

rentals typically last a short time (30 days or fewer) while leasing agreements are

for longer periods (12 months or more). The industry excludes the rental or leasing

of cars with drivers (www.fastmr.com and www.live-pr.com, 2011).

In Malaysia, various government directives have been issued for the

development of tourism industry and infrastructure because rapid economic growth

and increasing travel is equated to transportation needs beyond the government’s

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 47

resources capability (www.mann-travel.com, 2011). With that, there is a

partnership and coherence of thrust and focus between the government and Mann

Travel & Tours Sdn. Bhd. Aside from partnering, the said company also offers

uniquely priced products and services ranging from vehicle only to vehicle with

driver, trip arrangements (one-way or two-way), leasing services, and total fleet

management.

There are also internal marketing strategies at Avis Car Rental in Africa

according to Lombard (2009) wherein employees’ (being internal customers) long-

term relationship is viewed as mutually beneficial to the employer and the

employees and be able to execute their functions efficiently and boost sales.

To get a cue from other regions, a number of perspectives from Avis, Hertz,

Mann Travel, Dubai, and Japan are also included here.

Avis was established as Avis Airlines Rent-a-Car System by Captain Warren E.

Avis (Warren), a former pilot and World War II veteran, in 1946, in Detroit, United

States. Warren, who traveled very frequently from one city to another, noticed that

there was no efficient means of transport from airports to cities

(www.icmrindia.org).

As part of the documentation, this inspired him (Warren) to start a car rental

company that catered to those people who wanted to rent their own vehicles as

soon as they flew into a city. Although Hertz was already offering a transportation

service, its branches were located in the city, not at airports. By 1953, Warren had

launched franchise operations of Avis in Europe, Canada and Mexico

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 48

The story of Avis, the second largest car rental company in the world, and its

legendary 'We Try Harder' advertisement slogan had become a part of marketing

folklore by the beginning of the 21st century. Through this campaign, launched in

1963, Avis humbly acknowledged its 'Number Two' status and said that it tried

harder to compete with arch-rival, Hertz, the world's largest car rental company

(www.icmrindia.org).

Furthermore, the link speaks about the company's steadfast devotion to

becoming the preferred car rental company was evident in its financial

performance. Avis' journey from being a small, number two player (Hertz the

leading) in the US to a global company operating from 4700 locations in 160

countries had not been an 'easy ride.' Commenting on its credibility, Robert

Passikoff, President of Brand Keys, said, "The Avis brand not only has a

tremendous legacy, but its strength lies in its ability to follow evolving customer

values. Avis management pays attention to what customers expect - from safety to

affordability - and continues to move the brand toward those expectations. That

leads to loyalty, which of course is the leading indicator of profitability."

In the European car rental market, Avis had managed to beat not only Hertz,

but every other player. In the IBS Center for Management Research, it cited that in

2000, Avis was the market leader in the European market with an 18% market

share while Hertz and other competitors lagged behind. Both the US and European

operations of Avis posted profits ($ 2 billion and € 1.255 billion respectively) in

2001, while many of its rivals performed badly, with Alamo and National even filing
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 49

for bankruptcy. The industry observers felt that the company had been able to

perform well only because of its conscious decision to stick to 'basics'. Its focus on

factors that its customers cared about the most-convenience, safety, consumer

service and price - earned it leadership status in Europe and an extremely loyal

client base in the US (www.icmrindia.org).

In Malaysia, Mann Corporate offers guaranteed low rates with unlimited

mileage for or one-way rentals to qualified companies and their employees. This

program also offers companies assistance in managing their expenses more

effectively.

This program was designed to accommodate companies from start-ups to

major multinational corporations; Corporate offers a choice of central billing

methods to help companies maintain lower travel costs (www.mann-travel.com,

2011).

Business Traveler -- It was exclusively designed for the independent business

traveler who is always on the move and not part of the corporate program.

Economical rates are all-inclusive and guaranteed in the local currency of the

destination country.

One-Way Programs --One-way vehicle rentals are available at Mann Travel &

Tours Sdn Bhd location in Malaysia for a non-inclusive or all-inclusive rate, the

most economical way to rent one- way, based on length of rental and distance

traveled. Mann Travel & Tours Sdn Bhd provides this service to enable customers

to rent intermediate and full-size cars at a location in one city and drop them off at
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 50

another participating location for a flat daily rate with no drop of fee. A responsible

Mann Travel &Tours Sdn Bhd staff will then do the pick up.

Weekend Gateway --This program is available during weekends i.e. Friday –

Monday. Special rates is given during this rental as customers will normally use

this kind of rentals for going holidays and Mann Travel & Tours Sdn Bhd makes

their holidays a memorable and cost effective ones (www.mann-travel.com, 2011).

Chauffeur Service -- This service provides Mann Travel &Tours Sdn Bhd

customers with the option to hire and chauffeur – driven vehicle. This kind of

service is also required by big organization, which has engaged with corporate

program and would prefer the car to be driven by chauffeur.

Total Fleet Management – A company that owns numbers of vehicles will

always find it difficult to manage its vehicle efficient and effective manner. Mann

Travel & Tours Sdn Bhd is providing a total solution for fleet owner by introducing a

Total Fleet Management concept. This concept provides a hassle-free to fleet

owners as Mann Travel & Tours Sdn Bhd will be fully responsible to upkeep and

monitor the vehicle’s movement.

Leasing services --For corporate clients, Mann Travel & Tours also provide long

term leasing. Maximum of 2-3 years. Under leasing, the company will undertake to

provide servicing maintenance and replacement whenever required. Corporate

companies enjoying this facility would not incur additional staff, high maintenance

cost and depleting of asset value upon disposing off vehicles as all this will be

taken care by the company (www.mann-travel.com, 2011).

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 51

One of closest neighbors in Asia is Malaysia, which had a study defining car

rental industry as any rental for the purpose of road transport, including cars, vans,

and 4WD vehicles. These cars are rented for a variety of purpose such as

business and leisure. In the business market, car rental competes with company

fleet vehicles and taxis. In the leisure market, the competition is more difficult to

define (www.man-travel.com, 2011).

Euromonitor market report provides market trend and growth analysis of the

Car Rental industry in Malaysia. That includes analysis of key supply-side and

demand trends, detailed segmentation, historic volumes and values, company and

brand market shares, 5-year forecasts of market trends and market growth; and

robust and transparent market research methodology (www.euromonitor.com,

2011).

The Malaysian market research reports answered questions such as: what is

the market size of Car Rental in Malaysia; what are the major brands in Malaysia; is

there a shift from airport car rental to non-airport; is leisure car rental outpacing

business car rental; and is insurance replacement recession-resistant?

Sample Analysis of Trends -- Improving economic conditions in Malaysia saw

an increase in tourism and car rental posted 8% current value growth in 2010.

Growth was largely driven by the increase in leisure car rental, with airport leisure

car rental posting 16% current value growth in 2010 and non-airport leisure car

rental with 15% growth. Business car rental also recorded reasonable current value

growth of 2% in 2010, which was slightly stronger than in 2009.

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 52

Hawk Rent A Car led car rental in Malaysia with a 7% value share in 2010. The

multinational was resilient throughout the economic turmoil due to its exposure in

major countries around the world. Avis Rent A Car came with a 6% value share in

2010. Avis Rent A Car, like Hawk Rent, is a widely-recognized multinational

company. The company undertook promotions such as 50% off for rentals in

December and offered free rental days for those renting cars for a certain period of

time (euromonitor.com 2011).

The car rental industry has some similarities as Australia mirrors US. Big

operators have franchise expansion coverage operating in key cities and they

duplicate the system or vary their branding to capture other segments of the

market. Services and products are packaged based on the need and profile of the

clients but strategies are more of an internal issue and some warranted

partnerships for continued sustainability.

Another perspective is experienced in Dubai. Gulf News reported that there was

a study by police authorities on new measures to protect car rental companies. An

increase in unpaid traffic fines by vehicle leasing companies and rented cars being

used to commit crimes have prompted Dubai Police to conduct a study, which will

soon force changes in the sector. Many car renting companies are dealing with

mounting unpaid traffic fines incurred by the customers (Najami, 2010).

There are around 945 registered car leasing companies in Dubai. A number of

suspects have used their vehicles to commit crimes [such as the Wafi heist in
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 53

2007], smuggling the vehicles to neighbouring countries, dismantling parts of the

car and selling it in the market (www.zawya.com, 2010).

In the past, Lt. Col. Bin Galita narrated that car rental companies had the

authority to hold a customer’s passport until a ministerial circular abolished the

rule. Now, they only charge a specific amount on a credit card while clients have

the vehicle. Some customers are using the addresses of fake companies to use

these vehicles in crimes such as robberies, illegal alcohol trading, and illegal car

pooling.

Lt. Col. Bin also mentioned that the study also outlined one of the methods

motorists use to rob rented vehicles. They follow the formal and legal procedure in

renting a car and later make copies of the car key. They return the vehicle on the

agreed date and later sneak into the area where the cars are parked to steal the

vehicles.

Najami (2010) also wrote that the study also focused on violations committed by

the companies as mentioned by Lt. Col. Bin Galita. Some companies lease motor

vehicles whose registration has expired. Fines incurred by motorists are therefore

not paid. “And the bigger problem is that car leasing companies don’t operate on a

unified contract with motorists. Every car leasing company has its own rules with

some leasing vehicles to illegal residents or without taking the full details of the

customer,” said Lt Col Bin Galita.

In Japan, renting a car is an option worth considering if you plan to explore

the rural areas where public transportation is not a convenient or frequent as it is in

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 54

the cities. Even travelling in groups, a rental car can also be an economical

alternative. But it was said that exploring Japan’s big cities by car is not

recommended due to heavy traffic whereby navigation is difficult, and parking fees

are high (www.myjapanphone.com, 2011).

.The car rental industry in Australia began in 1970’s and is one of the more

innovative and competitive in the transport sector (Cronin, Shiel & Wellfare, 1988).

Cronin et al. (1988) also mentioned in BTE Journal that from 1955 to 1979, Avis

was the sole car rental operator in Australia. It started in downtown and airports as

its initial sector. It also competed as Budget Rent-A-Car in 1965 in the inner cities

“walk-in, drive-out” discount car rentals. Hertz came in 1964 and Kay Rent-A-Car

by mid-1950’s with concentration in downtown Sydney and Melbourne. These latter

two companies merged in 1977 as Hertz.

The BTE Publication (1988) also claimed that little information on the industry

has been published and no comprehensive analysis has been undertaken.

Although that perspective was not clear if it was only in Australia or elsewhere as

well during that period.

The car rental industry is defined as a group of firms, letting for hire self-drive

vehicles. These firms are closely related in the competitive process by reasons of

high sustainability of their products, and can be distinguished from other transport

suppliers by a gap in the range of substitute products (Boulding, 1955 in Cronin et

al., 1988).
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 55

The marketing strategies employed in America (almost half of car rental sales)

were attributable to travel agents’ intervention while in Australia, it is about 70% of

the total revenues for regional tourist destination (BTE 1985b in Cronin, et al.,

1988). It was also mentioned there that the rate setting is by sector rate variations

by geographic coverage and by specific location (e.g. point of origin/pick-up point,

destination, and territorial reach). Others are on franchise scheme. Australia

mirrors the development in US and it also adapted the following: Freedom Cheques

scheme or certain fixed-rate rentals and regular renter’s bonus; Regular renter give-

away program like free use of rental vehicles after a certain number of points; and

Discounts of varied sorts with time duration basis.

In a study entitled RENTQUAL: Development of a New Measurement Scale

in Car Rental Services -- “Service quality perceptions is accepted to be one of

the determinants of customer satisfaction and repeat purchase thus received

considerable attention in services marketing literature. Nevertheless, service

quality issues appear to have received limited attention in car rental services.

Furthermore, there is lack of previously developed scale exclusively measuring

service quality in car rental services. This paper aimed to develop a

measurement scale, in accordance with the procedure recommended by

Churchill (1979) and Parasuraman, Zeithaml and Berry (1988)” as written by

Ekiz and Arasli (2008).

Their empirical studies were conducted in two waves. First, qualitative research

was undertaken in the form of 23 in depth interviews which produced 61 items that
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 56

described tourists’ perceptions. Then, a quantitative study was undertaken to purify

the scale items, examine dimensionality, reliability, factor structure and validity.

Finally, a 18-item RENTQUAL scale with 6 factors comfort, delivery, safety,

handing over, ergonomics and accessibility, emerged. Results showed that safety

is found to be the most important factor in car rental services. Paper also presents

scale development procedure, discussion, implications and limitations.

It seems that the importance of travel facilities especially car rental business

will gain more attention due to the explained reasons and unavoidably owners of

these organizations will have to provide more extensive and better quality services

to be able to compete with the growing needs and expectations of international

tourists. Since customer satisfaction is an outcome of service quality (Cronin and

Taylor, 1992; Anderson and Sullivan, 1993) and customer satisfaction is

associated with other constructs such as repurchase intentions and word of mouth

communication (Davidow, 2000), owner/managers of car rental establishments

should understand the important expectations and perceptions of their customers

(Ekiz and Arasli, 2008).

Large scale and networked car rental companies are emerging continuously

along with the rapid development of car rental industry. In order to improve the

efficiency of logistics management, it is imperative to find a method which can

implement the pool segmentation assignment. A method was obtained to solve the

problem of pool segmentation and regional management center choice

synchronously based on the study of car rental industry development and its
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 57

logistics operation characteristic. The results of a case study show that the

proposed method can achieve objectives effectively (Yang and Jin and Hao, 2009).

A stochastic programming approach for a network revenue management

problem with flexible capacities is presented through the study entitled-- Revenue

management in the car rental industry: A stochastic programming approach. The

study focuses on a car rental network, which has the special property that the fleet

distribution between rental stations in the network can easily be adjusted at

determined costs. Our method simultaneously optimizes the fleet distribution on

the network and the capacity controls at station level. A two-stage stochastic

program is considered, where the demand uncertainty in the second stage is

approximated by a finite number of scenarios. The performance of the proposed

stochastic method is tested by simulation on a small car rental network and

compared with the results of a deterministic program (Haensel and Mederer

and Schmidt, 2011).

In the study Customer Satisfaction: Applying Concepts to Industry-wide

Measures (Barsky and Nash, 2003), it devised a national survey system based on

theoretical advances central to measuring satisfaction (e.g. disconfirmation

paradigm, consumer emotions) and other more applied issues affecting survey

construction (e.g scaling, sampling, question selection, reporting).

Earning high satisfaction ratings from guests is an especially important

strategy for hotel companies, because loyal customers are the principal driver of

profits. Along with continuing to stay at a brand’s properties, satisfied customers

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 58

also refer new business. Companies with satisfied, loyal customers enjoy higher

margins—and, consequently, greater profits—than those businesses that fail to

retain and satisfy their customers (Barsky & Nash, 2003).

Business Guests Will Pay More for Comfort-- One of the most dramatic findings

of this research is that providing high levels of comfort reduces the price sensitivity

of business travelers. Business travelers are willing to pay an average of $13 more

when comfort levels exceed their expectations. As a result, the return on investing

in guest comfort is likely to be greater than that of investing in other loyalty-related

emotions (Barsky & Nash, 2003).

Products for comfort--The emphasis placed on products, rather than services,

as key elements of feeling comfortable, distinguishes feeling comfortable from

other emotions.3 When describing comforting products, guests most often

commented about their room—in particular the room’s design, a comfortable bed

and room, room and hotel cleanliness, and convenient and special amenities.

Additional product-oriented attributes are good food, an engaging atmosphere,

noise control, and safety.

Staff support--Hotel staff members have a considerable influence on the feelings

of comfort experienced by guests. Guests appreciate having friendly,

knowledgeable, and helpful staff members whom they feel comfortable addressing.

Guests felt comfortable knowing that they can trust the staff with their safety,

belongings, messages, and wake-up calls. Many guests commented that it was

comforting when the staff approached their stay with a responsive, attentive, and
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 59

enthusiastic attitude. Guests mentioned efforts made to personalize their service

as a contributing factor to their comfort.

Arrival--A respectful and accommodating staff is a critical element of a

comfortable arrival. Using courteous words, repeating the guest’s name, and

treating the guest warmly makes guests feel comfortable. Arrival goodies, such as

warm cookies and milk, were a comforting gesture appreciated by guests.

Value--Receiving value for the price paid makes guests feel comfortable with

their hotel experience. Along that line, providing guests with complimentary gifts,

food, and beverages can provide them with feelings of comfort. Among the free

products that guests especially appreciated were coffee, popcorn, cookies, wine,

and cocktails. Being part of a loyalty program and receiving an upgrade, special

deal, or discount made guests feel comfortable with their decision to stay at a

hotel.

Location--Having a location that’s convenient for the purpose of the guest’s

visit gives guests a feeling of comfort. Specific advantages of an appropriate

location mentioned were being close to restaurants, freeways, fun attractions, and

businesses.

Journals on Annals of Tourism Research cited Hannigan (1980) on his study

about Reservations cancelled: Consumer complaints in the tourist

industry. Another research on Tour Operators and Destination Safety by Cavlek

(2002) also mentioned about car rentals. The article of Reimer (1990) focusing on
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 60

Packaging dreams: Canadian tour operators at work is another published related

study.

Synthesis of the Reviewed Literature and Studies

The reviewed foreign literature explored the facets of running business

particularly in rental company thrust, how to start a rental company, rental car

industry (RCI), running a rental car business (RCB), pros of RCB, cons of RCB,

equipment necessary to run a RCB, skills necessary to run a RCB, vehicle

insurance, business plan outline, customer function, marketing, customer-supplier

relationship, partnerships, competitor intelligence, business strategy and

positioning, good people, HR forms and keeping people, customer tracking system,

report formats, evolution of marketing concept, statistical roadmap, research

design, and operations management. These concepts served as inputs to the

focus of the study, the direction of the data gathering, the guide for identifying the

scope and delimitations, as well as the reference point in the interpretation of data

to be gathered or even for the arguments to be presented in Chapter 4.

On the other hand, the Local Literature is the mirror and parallelism of foreign

literature that are inherent only in and applicable to the local geographical

consideration. Topics like 3 Cs of Marketing, and Marketing, the Philippine’ style as

revealed by various Philippine companies present in the domestic scene, and

practices and outlook on the existing car rental industry operating locally. Concepts

on statistical topics to be used that were written and published locally for use and

with cases applicable to the local conditions is also part of this section.
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 61

The Foreign Studies consist of Avis Rent-a-Car in USA, Europe, Motorola,

Payless Rent-a-Car, EU-Rent, Malaysia’s Car Rental, Martket Growth Analysis,

Hawk Rent-a-Car, Australia’s Car Rental Industry, Business Services Operating

Ratios, Avis-Africa, Dubai Case, and Japan car rental. The management and track

records of these companies are extremely important and the experience of

operating in a competitive and cyclical environment is crucial. In order to succeed a

company needs a unique combination of management, vision, brand presence and

complete commitment to superior service, interact efficiently on both the supply and

demand sides.These studies may lend credibility to some aspired solutions,

considerations and validity of intended alternative solutions or options later, if ever

somehow duplicated.

The Journal Studies have selected articles, studies, and cases relating to CRB

in Australia, measurement scale in car rental services, revenue management in

CRB, customer satisfaction, annals of tourism articles like reservations cancelled,

consumer complaints, tour operators and destination safety, and packaging dreams

and Canadian operators. These studies may define the existing perspective and

arguments as well as related studies on CRB elsewhere. Any gaps not itemized or

covered among these articles may be another research focus and hint for further

study. These may also be used as reference and guide as to what was tried,

proven and what is yet an opportunity for academic exploration.

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 62

Chapter 3

RESEARCH METHODOLOGY

This chapter describes the research design and procedures that were used in

this study. It focuses on techniques and procedures of gathering data, population,

sample size and sampling design, the instruments used, and the statistical tool and

techniques necessary for the analysis of data.

Method of Research

To achieve the goals of the study, the researcher used the descriptive

research which provides an accurate portrayal of characteristics of a particular

individual, situation, or group. It gives a clear statement of what is existing at the

present understanding ‘why it is so’ and ‘what it might be’. Description is basic to all

research. It sets out to seek accurate and adequate descriptions of activities,

objects, processes and persons (Allison,1993).

This study is a means of discovering new meaning, describing what exists,

determining the frequency with which something occurs, and categorizing

information.

Population, Sample Size, and Sampling Technique

The population of this study includes car rental companies and car renters in

the National Capital Region. There were 71 car rental companies registered in the

Department of Tourism (DOT) Philippines, the Office of Tourism Standards and the

Regulation Accreditation Division as of September 30, 2011.

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 63

The sample size was determined using the Slovin’s formula. A five percent

margin of error was utilized in this study. Using an error of 5% (0.05), the

acceptable number of samples is 60 out of 71 car rental companies as shown in

the computation below.

n= N = 71 = 71 = 71 = 71 = 60

1 + Ne2 1 + (71) (0.05)2 1 + (71) (0.0025) 1 + 0.1775 1.1775

Where:

n - Sample size
N - Total number of population
e- Margin of error
To determine the level of satisfaction from the car rental customers/clients,

the researcher randomly select 5 car renters in each car rental company. Although,

some of these companies did not provide clients as respondents, the researcher

randomly selected respondents in places like airports, parks, and hotels to come

up with 300 respondents in determining the level of satisfaction of car rental

customers/clients in the services provided by car rental companies.

Description of Respondents

The respondents of the study consisted of owners/managers/operators of the

car rental business and car rental customers/clients or car renters located within the

NCR. There were 71 respondents of car rental owners registered and 300

respondents from car rental customers/clients. Car rental owners must have the

license to operate or must be registered in the Department of Tourism. For the

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 64

prospective clients, the Likert Scale type of survey was utilized to assess the

performance of existing operators and get the customers’ wants and needs. For

the operators, other considerations of the clients from the operators’ perspective

and benefits like those factors to be included in the rental contract and other

operational policies were derived.

The respondents came from different age brackets of varied interests for travel

that have been renting or planning of renting a car sometime in the future. They

may also be event planner or travel agent who has the chance to transact with car

rental operators. In some instances, they were students on field trip and

educational tour and/or trainees and delegates to conventions and conferences if

not business or leisure travelers. Chances are, they may also be

independent/private travelers only which do not have the intention of the above-

mentioned groups.

Table 1
Frequency Distribution of Respondents According to Classification
of Vehicles for Rent (multiple responses)

Classification of the f
vehicles for rent
Sedan 43
AUV 50
SUV 34
VAN 41
Bus 6

Table 6 displays the classification of vehicles for rent. On top of the items

enlisted are AUVs with 50, sedan with 43, Van with 41, SUVs with 34, and bus with

only 6.
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 65

Research Instrument

A researcher-made survey questionnaire for rental car operators (as

competitors) and for clients was used.

The questionnaire for the respondent car-rental company was divided into

three (3) parts – Company Profile, level of effectiveness of the marketing strategies,

and problems encountered by car rental business owners.

The survey used a five-point Likert scale as shown in the tables below:

Table 2
Five-point Likert scale for Level of Effectiveness of the Marketing Strategies
of car Rental Company

Numerical Rating Rating Scale Verbal Interpretation

1 65% and below Ineffective (IE)

2 66 – 75% Less Effective (LE)
Somewhat Effective
3 76 – 85%
(SE)
4 86 – 95% Effective (E)
5 96 – 100% Very Effective (VE)

Table 3
Five-point Likert scale for Problems Encountered by Car Rental Company

Numerical Rating Rating Scale Verbal Interpretation

1 65% and below Not a Problem (NP)

2 66 – 75% Less Serious (LS)
3 76 – 85% Somewhat Serious (SS)
4 86 – 95% Serious (S)
5 96 – 100% Very Serious (VS)
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 66

The questionnaire for the respondent car rental customers/clients was divided

into three (3) parts – Profile of the respondents, level of satisfaction on the services

of the car rental company, and problems encountered by customers/clients.

The survey used a five-point Likert scale as shown in the tables below:

Table 4
Five-point Likert scale for Level of Satisfaction of the Customers on the
Services of the Car rental Business

Numerical Rating Rating Scale Verbal Interpretation

1 65% and below Not Satisfied (NS)

2 66 – 75% Less Satisfied (LS)
Somewhat Satisfied
3 76 – 85%
(SS)
4 86 – 95% Satisfied (S)
5 96 – 100% Very Satisfied (VS)

Five-point Likert scale for Problems encountered by Customers/clients is the

same as the five-point likert scale of problems encountered by car rental company.

To validate the survey questionnaire, the researcher asked five (5) car rental

companies and five (5) customers/clients before the formal data gathering

procedure started. According to Howard (2008), in order for a questionnaire to be

useful, the data it produces must be trustworthy,i.e., we must know that the results

are meaningful and can be applied more generally than to just the sample tested.

Proving that trustworthiness for questionnaires involving subjective clinical

endpoints is not trivial, and ensuring that the resulting data reflect the “truth” has

spawned an entire field of study.

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 67

Data Gathering Procedure/s

The researcher conducted interviews by which the survey was deployed and

the competitors’ profiling, mock-client inquiry techniques (data gathering plan). The

next step was to finalize contacts to where the survey was deployed and executed

the data gathering plan. After that was the deployment of the survey, interviewing

as follow-up inquiry, gathering and summarizing the details in the survey

questionnaire. The last was getting back to the respondents if there were further

questions.

As intended, the survey of targeted respondents was conducted face-to-face

or through electronic mail according to planned distribution based on stratified

distribution before a random pick per group shall be done.

Interviews or follow-up among any hazy survey feedback were done. Asked

were some open-ended questions at the later part of the survey for suggestions and

assessments of past experience in renting cars.

Mock-client inquiry or mystery client to call existing car rental operators on

what promotional strategies and marketing schemes and perks do they offer and

give to their customers. Also, the researcher verified with past clients, on the

performance of the operator during sales transaction with the past client. Asked the

sales representative on the repercussions of the rent deal for if-then scenarios to be

done in a client’s fashion of questioning so as not to scare or threaten the car rental

company.
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 68

A pre-test was conducted to detect possible weaknesses in the questionnaire.

An important purpose of the pre-test was to discover the respondents‟ reactions to

questions and it also helped to discover repetitiveness or redundancy (Cooper and

Schindler, 2001:236).

Statistical Treatment of Data

The interpretation of data employed the analysis gathered by percentage

distribution, weighted mean, T-test for two independent variables, and one-way

analysis of variance (ANOVA).

1. A percentage frequency distribution is a display of data that specifies

the percentage of observations that exist for each data point or grouping of data

points. It is a particularly useful method of expressing the relative frequency of

survey responses especially in describing the profile of the respondents. The

formula for percentage frequency distribution is:

%= f/n x 100

Where: % = percent
f = frequency
n = total number of respondents

2. A Weighted Mean ( X ) is the arithmetic average of observations or items

in a set of data. We compute the mean by adding the observations or items

(scores or responses) and divide by the number of observations. The formula is:
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 69

Where: X = weighted mean

f = frequency
x = weight
n = number of respondents

3. T-test for two (2) independent variables. It allows researcher to

evaluate the mean difference between two populations using the data from two

separate samples.

Interval or Ratio

Ho: There is no significant difference between two means.

1  2  0

Ha: There is a significant difference between two means.

1  2  0



Test Statistic: X1  X 2
t 
n1  
 1 S12  n2  1 S 22   

1

1 

 
n1  n2  2 
 1
n n2 

Decision Rule: If p-value is less than or equal to α (level of significance), reject Ho,

O.W. accept Ho.

4. One Way Analysis of Variance (ANOVA) is a statistical technique that

calculates whether or not two or more means are within a certain percent chance

(confidence level) of being the same based upon the actual and expected levels of

variance within each data set.

The formula:

Decision rule: If p value is ≤ α, reject H0, otherwise accept H0.

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 70

Chapter 4

PRESENTATION, ANALYSIS, AND INTERPRETATION OF DATA

This chapter presents, analyzes, and interprets the findings or results of the

study based on the sub-problems and research hypotheses.

1. Profile of the Respondents

1.1. Respondent Car Rental Companies

1.1.1. Form of Business Organization

Table 5
Frequency and Percent Distribution of Respondents
According to Form of Business Organization

Form of business organization f %

Single proprietorship 30 50.0
Partnership 4 6.7
Corporation 26 43.3
Total 60 100.0

The table above shows the frequency and percent distribution of the

respondents’ form of business organization. A frequency of 30 or 50% of the total

respondents fall under “Single Proprietorship” form of business organization, which

implies that half of the total respondents prefer to organize and manage their own

business. Single proprietorship is easy to set-up or start the business, as described

by Navarro and Azanza (2002).

A frequency of 26 or 43.3% of the total respondents fall under “Corporation”

form of business which depict maximum flexibility with a limited liability of individual
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 71

share, dissolution of the business is least likely to occur, reduced tax burden on

owners, among others, as described by Navarro and Azanza (2002).

Meanwhile, a frequency of 4 or 6.7% percent of the total respondents have

“Partnership” form of business organization because it is relatively easy to set-up

but partnership can easily be dissolved when personal rifts or death arises in the

process, as depicted by Navarro and Azanza (2002).

Generally, a smaller business is more flexible, while larger business, or those

with wider ownership or more formal structures, will usually tend to be organized as

corporations as supported by Kennedy (2005).

1.1.2. Number of Years of Operation

Table 6
Frequency and Percent Distribution of Respondents
According to the Number of Years of Operation

Number of years of operation f %

1 – 5 years 13 21.7
6 – 10 years 15 25.0
11 – 15 years 8 13.3
16 – 20 years 13 21.7
21 – 25 years 3 5.0
26 years and above 6 10.0
No response 2 3.3
Total 60 100.0

The above table reveals the distribution of the respondents in terms of years

of operation. 15 or 25% of the rental outlets have been operating between 6-10

years, those operating under the 1-5 year and 16-20 year range tied with 13 or

21.7%. 8 or 13.3 have been operating for 11-15. 6 or 10% of the rental outlets
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 72

have been operating for over 26 years. The lowest went to 21-25 years and those

with no response with 3 or 5% and 2 or 3.3% respectively.

This means that the life of a car rental business is relatively short and

companies need to sell their vehicle once they reach a certain mileage. Those that

are willing to innovate and provide further operational efficiency might reach a

longer business operation. According to York of “Start your Business Today”, think

about whether you have what it takes to start a business in these terms: You have

to be self-motivated, willing to make many sacrifices, and be able to last for the long

term while your business goes from startup to maturity.

This means that car rental companies cater most of the vehicle classification

but majority of it are AUVs. According to Gancayco (2012), it’s widely known that

the more common a car is on the road, the more abundant its parts are in Banawe,

and there are thousands of AUVs on the road! Regular oil change for an AUV is

affordable. With only displacement engines ranging from 2.0L to 2.5L plus curb

weights playing in the 1,500- to 1,600-kilogram area, it’s no surprise that AUVs

demand extra pocket money. Since they are only ideal for city driving, no strong

displacement or engine is needed.

It all boils down to the price. There exists a population who, before anything

else, checks out the price tag. Without the jibber jabber, the AUV always wins in

terms of the price. AUVs are generally priced from Php700,000 to Php1,200,000.

Is it true for value for money? Yes.

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 73

1.1.3. Number of Units of Vehicles for Rent

Table 7
Frequency and Percent Distribution of Respondents
According to Number of Vehicles for Rent

Number of units of
f %
vehicles for rent
2–5 15 25.0
6–9 4 6.7
10 – 13 3 5.0
14 – 17 2 3.3
18 – 21 3 5.0
22 – 25 4 6.7
26 – 29 0 0
30 cars and above 29 48.3
Total 60 100.0

Table 7 presents the frequency and percent distribution of respondents

according to the number of vehicles that are available for rent. The highest is 30

cars and above with 29 or 48.36%. It is followed by 2-5 vehicles with 15 or 25%,

while those with 22-25 and 6-9 vehicles each had 4 or 6.7%. Those with 10-13 and

18-21 units for rent both have 3 or 5.0% responses. Next is 14-17 with 2 or 3.3%

while no one answered for the 26-29 vehicle range.

The car rental is vital to the regional sustainability of tourism with one-third of

all overseas holidaying visitors renting a car during their stay. The negative impact

on a visitors’ experience regarding rental car availability thereby generating

negative word-of-mouth, and in order to prevent car rental fleet and shortages,

majority of the car rental companies were able to provide 30 cars and above.

According to Itic (2010), if car rental companies are able to respond to the shortage,
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 74

we can be more certain of successfully closing the rental fleet gap if an integrated

package of measures is put in place. The closer the rental fleet is to its optimal size,

the less damage is done to tourism.

1.2. Respondent Customers/clients

1.2.1. Age

Table 8
Frequency and Percent Distribution of Respondents
According to Age

Age f %
18 to 25 years old 37 12.3
26 to 35 years old 98 32.7
36 to 45 years old 101 33.7
46 to 55 years old 52 17.3
Above 56 years old 12 4.0
Total 300 100.0

Table 8 presents the frequency and percent distribution of respondents in

terms of age. Out of 300 respondents, 101 or 33.7% are aged 36-45 while 98 or

32.7% are under 26-35 age range. 52 or 17.3% of them falls under 46-55 age

bracket, 37 or 12.3% are aged 18-25, the lowest are respondents who are above

56 years old with only 12 or 4%.

The above table implies that most of the renters are typically at the peak of

their career as successful employees, executives, family person and even

successful entrepreneurs where they already have the capacity to pay for the rent.

Based on the Bureau of Labor and Employment Statistics of October 2012, the

highest employment falls between 25 years to 45 years of age which clearly

supports that majority of the respondents are capable of renting a vehicle.

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 75

1.2.2. Gender

Table 9
Frequency and Percent Distribution of Respondents
According to Gender

Gender f %
Male 190 63.3
Female 110 36.7
Total 300 100.0

From table 9, it can be gleaned that 190 or 63.3% of the 300 hundred

customer respondents are male while 110 or 36.7% of them are female.

This means that majority of the car renters are male since most of them have

the aggression aside from having the resources to rent a vehicle. As for Goldberg

(1999), it makes a brilliant case that in every society "males occupy the

overwhelming numbers of upper hierarchical positions... [there is an] association of

high-status roles - whichever they happen to be in any given society - with males.

Goldberg's book advances a simple yet convincing theory: patriarchy and male

dominance is universal among all known societies throughout history of which there

is direct evidence. This universality begs an explanation, and that explanation is

found in the difference in the hormonal systems of the two sexes. Men are quite

confident behind the wheel as they make out when it comes to navigation and

modern motoring.
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 76

1.2.3. Occupation

Table 10
Frequency and Percent Distribution of Respondents
According to Occupation

Occupation f %
Government Official 28 9.3
Employee (public/private) 113 37.7
Entrepreneur / businessman 40 13.3
Student 19 6.3
Unemployed 31 10.3
OFW 69 23.0
Total 300 100.0

Table 10 presents the frequency and percent distribution of respondents

according to occupation. Of the total respondents, 113 or 37.7% of them are

employees from public and private firms. 26 or 23% of the respondents are OFW.

40 or 13.3% of the customers are businessmen or entrepreneurs. 31 or 1.3% are

unemployed. 28 or 9.3% are government officials and only 19 or 6.3% are

students.

This implies that most of the car renters are employees of private or public

firms. Employees usually are classified according to the hours worked and the

expected duration of the job. Accordingly, they generally fall into three major

categories: full-time, part-time, and temporary employees. As the economy grows

and corporate earnings increase, so companies are prepared to pay more on

corporate travel and foreign leisure.

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 77

1.2.4. Purpose of Trip

Table 11
Frequency and Rank Distribution of Respondents
According to Purpose of Trip (multiple responses)

Purpose of trip f Rank

Vacation / leisure 88 2
Seminar / conference 18 5
Business trip 34 4
Wedding service 5 6
Airport transfer 76 3
Personal use 100 1

Table 11 shows the frequency and rank distribution of respondents according

to purpose of their trip. It can be seen that of the 300 respondents, 100 customers

rented vehicles for personal use, 88 would rent for vacation or leisure purpose, 76

respondents would rent vehicles for airport transfer, 18 respondents answered that

they’d rent vehicles for seminars or conference and the lowest, which is 5 answered

that they rented vehicles for wedding.

This implies historical industry growth that increases airline passenger traffic,

the trend toward shorter, more frequent vacations resulting from the number of

households with two wage earners, the demographic trend toward older more

affluent citizens who travel more frequently. This is driven by the fact that more

people are able to fly and volumes are growing globally. This in turn positively

impacts the car rental businesses.

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 78

1.2.5. Frequency of Rental

Table 12
Frequency and Percent Distribution of Respondents
According to Frequency of Rental

Frequency of Rental f %
Weekly 19 6.3
Monthly 81 27.0
Yearly 196 65.3
No response 4 1.3
Total 300 100.0

This table presents the frequency and percent distribution of respondents

according to frequency of rental. The highest frequency which is 196 or 65.3%

respondents rent vehicles on a yearly basis, 81 or 27.0% would rent a car in a

monthly basis and 19 or 6.3% of the customers stated that they would rent on a

weekly basis while 4 or 1.3% did not specify an answer.

It shows that majority of the respondents usually rent a vehicle every year

since they have exposed to the Filipino culture to spend reunions at least once a

year, one cannot overlook the fact that they adhere to the saying, “the family that

eats together stays together.” Additionally, the Filipinos working abroad will find

time to spend with their families after their respective vacations which usually

happens every year.

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 79

1.2.6. Vehicle Preference

Table 13
Frequency and Rank Distribution of Respondents
According to Vehicle Preference (multiple responses)

Vehicle Preference f Rank

Sedan (i.ee vios, altis, civic,
64 3
sentra, etc.)
AUV (i.e. innova, revo,
122 1
adventure, etc.)
SUV (i.e. crosswind, fortuner,
53 4
montero, etc.
Van (i.e. hi, ace starex, etc.) 78 2

Table 13 shows the frequency and rank distribution of respondents according

to their vehicle preference. 122 of them answered that they prefer to rent an Asian

Utility Vehicle (AUV), 78 of them prefer Van, while 64 of them prefer to rent a

sedan. The lowest which is 53, answered that they like Sports Utility Vehicle

(SUV).

This means that most of the respondents prefer to rent an AUV. According to

Gancayco (2012), AUVs are family cars, the ride comfort, availability of

components, abundant spare parts, regular oil change is affordable, fuel efficient

and most of all, it has a value for money. It is most well-liked vehicle by Asian

travelers. It has spacious interiors since it is viewed as a minivan thus, it has the

means for capacity. The normal capacity for a regular AUV is 7 passengers

including the driver, but this vehicle can go beyond that – at least 10 passengers

including the driver.

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 80

1.2.7. Transmission Preference

Table 14
Frequency and Percent Distribution of Respondents
According to Transmission Preference

Transmission Preference f %
Manual 152 50.7
Automatic 143 47.7
No response 5 1.7
Total 300 100.0

From table 14, it can be seen that 152 or 50.7% of the 300 customers like to

rent vehicles with manual transmission. 143 or 47.7% of them rent vehicles with

automatic transmission while only 5 or 1.7% didn’t have a response.

This implies that majority of the respondents prefer the manual transmission in

renting a car. Though manual and automatic transmissions have no big difference

but according to Reed (2010), the maintenance of a manual transmission offers

some savings. According to Marc Uchiyama, assistant service manager at Honda of

Santa Monica, the fluid for a manual transmission needs less frequent changes

than on an automatic. And if a manual transmission ever breaks down, it's usually

because the clutch needs to be replaced with lesser cost compare with replacing an

automatic transmission and the savings is apparent. Cars with manual

transmissions also offer better control when driving because they have a faster shift

response, and allow the driver to access extra power by downshifting on inclines.

On the other hand, the table also implies that there’s no bigger difference

between manual and automatic transmissions because most of the respondents do

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 81

not care either the vehicle is a manual transmission or automatic transmission as

long as their objectives are met. On the other hand, manual transmission - if

properly operated - will go hundreds of thousands of kilometers without problems

and the lubricant needs to be replaced periodically but not as frequently as in

automatics

1.2.8. Service Preference

Table 15
Frequency and Percent Distribution of Respondents
According to Service Preference

Service preference f %
Self-driven 115 38.3
With driver 184 61.3
No response 1 .3
Total 300 100.0

Table 15 shows the frequency and percent distribution of respondents

according to service preference. Of the total respondents, 184 or 61.3% of the

customers would rent vehicles with driver. 115 or 38.3% of them prefer self-driven

service while 1 or .3% didn’t have an answer.

This implies that the majority of the respondents prefer to rent a vehicle with

driver from the car rental company. According to Brandom (2012), car renters are

confident to arrive at their destinations on time. If they are working under a very

tight schedule, they will have a much better chance of getting them to the event at

the right hour. If your hired driver finds himself stuck in traffic or facing any other

types of delay, he will have backup strategies on hand to get around the issue.
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 82

An authorized driver can also provide a range of services and added

convenience with pick-up and return services. It avoids you from paying damages in

case of an accident and it would definitely give you the experience a nice trip with

the driver’s knowledge and familiarity of best routes.

2. Level of Satisfaction of the Customers/Clients on the Services of the Car

Rental Business

2.1. Age

Table 16 presents the level of satisfaction of the respondents on the services

provided in terms of age. The overall WM for the responses started with 4.07

(satisfied) in terms of reliable and well-maintained vehicles, 4.04 WM (satisfied)

was garnered by the answer that there is a variety of vehicles for every occasion

and that reservation is quick. In terms of branches in different locations received

3.22 WM while the entry discount coupons obtained a WM of 2.95 only.

The grand weighted mean which were classified based on age bracket were

as follows: 3.80 WM was obtained by the responses of customers under 26-35 age

bracket, 3.75 WM was given by the responses of customers who are 18-25 years

old, 3.70 WM was received by the answers coming from clients who belong to 46-

55 and above 56 age range, while 3.62 WM was given by the responses from the

36-45 years age range. All of these were interpreted as satisfied. The overall and

grand weighted mean for all the response is 3.371 also interpreted as satisfied.

It shows that regardless of age, customers are satisfied in general except for

some services provided like added features, airport rental locations, tie-up with
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 83

hotel and travel agencies, branches in different locations and discount coupons

where most of the respondents are somewhat satisfied. Services like these will

definitely increase company’s productivity and profit but proper financial planning

must be made

Table 16
Level of Satisfaction on the Services Provided by the Car Rental
Company According to Age
Age
Above
SERVICES 18-25 y/o 26-35 y/o 36-45 y/o 46-55 y/o Overall
56 y/0
PROVIDED
WM VI WM VI WM VI WM VI WM VI WM VI
Variety of vehicles
4.11 S 4.10 S 3.94 S 4.08 S 4.08 S 4.04 S
for every occasion
Reliable and well-
4.16 S 4.10 S 3.96 S 4.15 S 4.08 S 4.07 S
maintained vehicles
Added features like
GPS, TV monitor, 3.73 S 3.53 S 3.27 SS 3.20 S 3.50 SS 3.41 SS
and DVD systems
Ease of assistance
if problem arises 3.97 S 3.83 S 3.87 S 4.02 S 3.92 S 3.90 S
while on rent
Quick reservation 3.89 S 4.06 S 3.95 S 4.25 S 4.17 S 4.04 S
Reliable billing
3.95 S 3.99 S 3.99 S 4.22 S 4.08 S 4.03 S
system
Courteous drivers 3.73 S 3.93 S 3.87 S 4.08 S 4.33 S 3.93 S
Free pick-up and
3.86 S 3.94 S 3.85 S 4.06 S 3.92 S 3.92 S
return service
Discounted rates for
long-term rentals
3.70 S 3.91 S 3.78 S 4.00 S 3.45 SS 3.84 S
(i.e. weekly,
monthly, yearly)
Volume discount
(i.e. number of 3.57 S 3.91 S 3.77 S 3.80 S 3.58 S 3.79 S
rental transactions)
Convenience in
3.78 S 3.81 S 3.69 S 3.80 S 3.83 S 3.77 S
refunding deposits
Lower rates for
3.89 S 3.79 S 3.63 S 3.69 S 3.83 S 3.73 S
older vehicles
Credit line or
3.83 S 3.82 S 3.62 S 3.55 S 3.67 S 3.70 S
payment flexibility
Easy to locate the
3.73 S 3.85 S 3.56 S 3.57 S 3.50 SS 3.67 S
company or office
Reliable Office/
3.84 S 3.84 S 3.59 S 3.61 S 3.75 S 3.71 S
Booking Staff
Airport rental
3.25 SS 3.63 S 3.21 SS 3.29 SS 3.33 S 3.37 SS
locations
Tie-up with hotel S
3.58 S 3.60 S 3.15 3.20 SS 3.42 SS 3.37 SS
and travel agencies S
Branches in S
3.43 SS 3.43 SS 3.12 2.92 SS 3.08 SS 3.22 SS
different locations S
Discount coupons S
3.16 SS 3.18 SS 2.85 2.59 SS 2.75 SS 2.95 SS
S
Grand Weighted
3.75 S 3.80 S 3.62 S 3.70 S 3.70 S 3.71 S
Average
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 84

2.2. Gender

Table 17
Level of Satisfaction on the Services Provided by the Car Rental
Company According to Gender

Gender
Overall
Male Female
SERVICES PROVIDED
WM VI WM VI WM VI
Variety of vehicles for every
4.02 S 4.09 S 4.04 S
occasion
Reliable and well-
4.06 S 4.08 S 4.07 S
maintained vehicles
Added features like GPS,
TV monitor, and DVD 3.43 SS 3.38 S 3.41 S
systems
Ease of assistance if
3.90 S 3.89 S 3.90 S
problem arises while on rent
Quick reservation 3.05 S 4.02 S 4.04 S
Reliable billing system 4.03 S 4.02 S 4.03 S
Courteous drivers 3.93 S 3.93 S 3.93 S
Free pick-up and return
3.91 S 3.93 S 3.92 S
service
Discounted rates for long-
term rentals (i.e. weekly, 3.88 S 3.76 S 3.84 S
monthly, yearly)
Volume discount (i.e.
number of rental 3.83 S 3.71 S 3.79 S
transactions)
Convenience in refunding
3.83 S 3.65 S 3.77 S
deposits
Lower rates for older
3.77 S 3.67 S 3.73 S
vehicles
Credit line or payment
3.72 S 3.67 S 3.70 S
flexibility
Easy to locate the company
3.69 S 3.65 S 3.67 S
or office
Reliable Office/Booking
3.72 S 3.70 S 3.71 S
Staff
Airport rental locations 3.37 SS 3.38 SS 3.37 SS
Tie-up with hotel and travel
3.37 SS 3.35 SS 3.37 SS
agencies
Branches in different
3.19 SS 3.27 SS 3.22 SS
locations
Discount coupons 2.88 SS 3.06 SS 2.95 SS
Grand Weighted Average 3.72 S 3.70 S 3.71 S
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 85

Table 17 presents the weighted mean of responses for services provided

which were classified based on genders. 15 of the 19 items were given a verbal

interpretation of satisfied with reliable and well-maintained vehicles topping the list

with 4.07 WM for both genders. It was followed by the services of quick

reservation and variety of vehicles for every occasion which received a 4.04 WM.

The responses which received a somewhat serious verbal interpretation

include airport rental locations and tie up with hotel and travel agencies which both

received a 3.37 WM. Branches in different locations with 3.22 WM and discount

coupons with 2.95 WM only.

The grand WM average for the responses is 3.72 for the male and 3.70 for

the female with 3.71 overall WM. All of which were interpreted as satisfied.

It means that regardless of gender, customers are satisfied except for other

services that car rental companies need to innovate. Both genders agree that

easier booking and accessibility of location are indeed important to them.

2.3. Occupation

Table 18 presents the responses which were classified based on occupation.

All of the items were given a verbal interpretation of satisfied. First on the list of

items is a reliable and well-maintained vehicle with 4.07 WM. Next is variety of

vehicles for every occasion and quick reservation with 4.04 WM. These were

followed by reliable billing service with a WM of 4.03.Following is the entry of

courteous drivers with 3.93 WM. Next is free pick-up and return service with 3.92

WM. The ease of assistance if problem arises while on rent with 3.9 WM.
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 86

Discounted rates for long term (weekly, monthly, yearly) rentals received 3.8 WM.

Next is s volume discounts with 3.84 WM. Following it is convenience in refunding

deposits which garnered a WM 3.79. The item lower rates for older vehicles

received a WM 3.73, while reliable booking/office staff had a 3.71 WM. Credit line

or payment flexibility has 3.70 WM. Next to it is easy to locate the company or

office which obtained a 3.67WM. Added features like GPS, TV Monitor, and DVD

Systems on the other hand had a WM of 3.41. Both airport rental locations and tie

up with hotel and travel agencies got a 3.37 WM. Branches in different locations

and discount options were last with 3.22 and 2.95 WM respectively.

The grand weighted average for the responses based on the occupations

topped by employees from both public and private firms with 3.79 WM. Following it

is a WM of 3.74 from the entrepreneurs and businessmen. Third came from the

OFWs with 3.69 WM followed by students with 3.63 WM. Last responses came

from the government officials which has 3.57 WM. The GWA for all the responses

is 3.71 and is interpreted as satisfied.

Table 18 shows that regardless of the customer’s occupation, renting a car is

indeed crucial whenever the need arises. Having a history of driving offenses will

understandably influence your eligibility to rent a car. The better your driving

history, the better chance of renting a vehicle. The best thing to do is check the

company's policy regarding driving records prior to pickup. Accessibility and easier

booking of car rental services play a very important role in car rental business.
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 87

Table 18
Level of Satisfaction on the Services Provided by the Car Rental
Company in terms of Occupation
Occupation
Government Employee Entrepreneur/ Overall
SERVICES Student Unemployed OFW
official (public/private) Businessman
PROVIDED
WM VI WM VI WM VI WM VI WM VI WM VI WM VI
Variety of
vehicles for every 3.82 S 4.12 S 4.03 S 4.11 S 3.81 S 4.12 S 4.04 S
occasion
Reliable and
well- maintained 3.96 S 4.18 S 4.15 S 4.05 S 3.94 S 3.96 S 4.07 S
vehicles
Added features
like GPS, TV S
3.39 SS 3.35 SS 3.18 SS 3.63 S 3.39 SS 3.60 S 3.41
monitor, and S
DVD systems
Ease of
assistance if
3.68 S 4.00 S 3.90 S 3.94 S 3.84 S 3.83 S 3.90 S
problem arises
while on rent
Quick reservation 3.86 S 4.07 S 3.98 S 3.89 S 4.10 S 4.12 S 4.04 S
Reliable billing
3.79 S 4.08 S 4.08 S 3.84 S 4.06 S 4.04 S 4.03 S
system
Courteous
3.81 S 4.04 S 3.63 S 3.68 S 4.19 S 3.90 S 3.93 S
drivers
Free pick-up and
3.52 S 3.95 S 3.93 S 4.05 S 3.84 S 4.01 S 3.92 S
return service
Discounted rates
for long-term
rentals (i.e. 3.64 S 3.88 S 4.08 S 3.63 S 3.93 S 3.74 S 3.84 S
weekly, monthly,
yearly)
Volume discount
(i.e. number of
3.63 S 3.83 S 4.00 S 3.42 SS 3.90 S 3.71 S 3.79 S
rental
transactions)
Convenience in
refunding 3.54 S 3.86 S 3.83 S 3.47 SS 3.77 S 3.74 S 3.77 S
deposits
Lower rates for
3.50 SS 3.82 S 3.78 S 3.58 S 3.94 S 3.61 S 3.73 S
older vehicles
Credit line or
payment 3.64 3.83
S S 3.80 S 3.50 SS 3.58 S 3.57 S 3.70 S
flexibility
Easy to locate
the company or 3.46 SS 3.84 S 3.70 S 3.53 S 3.58 S 3.57 S 3.67 S
office
Reliable
Office/Booking 3.56 S 3.87 S 3.87 S 3.74 S 3.39 SS 3.58 S 3.71 S
Staff
Airport rental S S
3.37 SS 3.43 SS 3.53 S 3.21 SS 3.16 SS 3.34 3.37
locations S S
Tie-up with hotel
S S
and travel 3.44 SS 3.42 SS 3.39 SS 3.53 S 3.06 SS 3.32 3.37
S S
agencies
Branches in S S
3.22 SS 3.19 SS 3.18 SS 3.37 SS 3.10 SS 3.30 3.22
different locations S S
Discount S S
3.04 SS 3.11 SS 2.90 SS 2.89 SS 2.35 LS 2.96 2.95
coupons S S
Grand Weighted
3.57 S 3.79 S 3.74 S 3.64 S 3.63 S 3.69 S 3.71 S
Average
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 88

2.4. Frequency of Rental

Table 19
Level of Satisfaction on the Services Provided by the Car Rental
Company in terms of Frequency of Rental

Frequency of Rental
Overall
Weekly Monthly Yearly
SERVICES PROVIDED
WM VI WM VI WM VI WM VI

Variety of vehicles for every occasion 3.95 S 4.00 S 4.07 S 4.04 S

Reliable and well-maintained vehicles 4.21 S 4.11 S 4.04 S 4.07 S
Added features like GPS, TV monitor,
3.21 S 3.51 S 3.38 SS 3.40 S
and DVD systems
Ease of assistance if problem arises
3.79 S 3.91 S 3.90 S 3.90 S
while on rent
Quick reservation 3.79 S 4.01 S 4.07 S 4.04 S
Reliable billing system 3.79 S 4.00 S 4.06 S 4.03 S
Courteous drivers 3.95 S 3.75 S 3.98 S 3.92 S
Free pick-up and return service 3.79 S 3.89 S 3.94 S 3.92 S
Discounted rates for long-term rentals
3.89 S 3.89 S 3.81 S 3.84 S
(i.e. weekly, monthly, yearly)
Volume discount (i.e. number of rental
3.84 S 3.81 S 3.77 S 3.78 S
transactions)
Convenience in refunding deposits 3.79 S 3.74 S 3.77 S 3.77 S
Lower rates for older vehicles 3.89 S 3.74 S 3.72 S 3.73 S
Credit line or payment flexibility 3.74 S 3.74 S 3.68 S 3.70 S
Easy to locate the company or office 3.95 S 3.63 S 3.68 S 3.68 S
Reliable Office/Booking Staff 3.63 S 3.77 S 3.71 S 3.72 S
Airport rental locations 3.84 S 3.41 SS 3.30 SS 3.37 SS
Tie-up with hotel and travel agencies 3.74 S 3.40 SS 3.30 SS 3.36 SS
Branches in different locations 3.44 SS 3.21 SS 3.19 SS 3.21 SS
Discount coupons 3.32 SS 3.10 SS 2.83 SS 2.94 SS
Grand Weighted Average 3.76 S 3.72 S 3.70 S 3.71 S

Table 19 reveals the distribution of responses classified based on the

frequency of rental. The item for reliable and well-maintained vehicles was up

ahead of all overall weighted mean with a WM of 4.07. Next is the variety of

vehicles for every occasion with 4.04 WM. Third is reliable billing system which

obtained 4.03 WM. Following are the items of courteous drivers and free pick-up
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 89

and return service which both obtained 3.92 WM. Ease of assistance if problem

arises while on rent followed with 3.90 WM. Discounted rates for long term rentals

obtained 3.84 WM, while Volume discount and convenience in refunding deposit

were next with 3.78 and 3.77 WM respectively. Lower rates for older vehicles on

the other hand, obtained 3.73 WM. Next is a lower rate for older vehicles with 3.73

WM. Reliable office/booking staff came in next with 3.72 WM while credit line or

payment flexibility followed with 3.70 WM. Easy to locate office or company

obtained 3.68 and added values like GPS, TV monitor and DVD system followed

with 3.40 WM.

The items with verbal interpretation of somewhat satisfied started with airport

rental locations with 3.37 WM, while tie-up with hotels and travel agencies obtained

3.36 WM. The last two items are branches in different locations and discount

coupons, both with 3.21 and 2.94 WM respectively.

The grand weighted average for the responses from the weekly, monthly and

yearly rentals with 3.76, 3.72, and 3.70 WM respectively; bringing down the overall

GWA to 3.71 with a verbal interpretation of satisfied.

The data shows that regardless of the frequency whether weekly, monthly or

yearly, customer satisfaction depends on the services provided by the car rental

companies most importantly the quality of the vehicle, fast and easy reservation

and reliable billing system. It is very important for the car renters to rent vehicles

that has no technical problems especially long term rentals for the customer’s

confidence towards the performance of the vehicle.

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 90

2.5. Transmission Preference

Table 20
Level of Satisfaction on the Services Provided by the Car Rental
Company in terms of Transmission Preference

Transmission preference
Overall
Manual Automatic
SERVICES PROVIDED
WM VI WM VI WM VI
Variety of vehicles for every occasion 3.98 S 4.10 S 4.04 S
Reliable and well-maintained vehicles 4.08 S 4.06 S 4.07 S
Added features like GPS, TV monitor, SS S
3.23 3.59 3.41 SS
and DVD systems
Ease of assistance if problem arises S S
3.89 3.90 3.89 S
while on rent
Quick reservation 4.02 S 4.08 S 4.05 S
Reliable billing system 4.03 S 4.04 S 4.03 S
Courteous drivers 3.95 S 3.90 S 3.92 S
Free pick-up and return service 3.92 S 3.94 S 3.93 S
Discounted rates for long-term rentals S S
3.91 3.78 3.85 S
(i.e. weekly, monthly, yearly)
Volume discount (i.e. number of rental S S
3.79 3.79 3.79 S
transactions)
Convenience in refunding deposits 3.82 S 3.73 S 3.78 S
Lower rates for older vehicles 3.76 S 3.72 S 3.74 S
Credit line or payment flexibility 3.72 S 3.70 S 3.71 S
Easy to locate the company or office 3.63 S 3.74 S 3.68 S
Reliable Office/Booking Staff 3.69 S 3.75 S 3.72 S
Airport rental locations 3.24 SS 3.51 S 3.37 SS
Tie-up with hotel and travel agencies 3.21 SS 3.54 S 3.37 SS
Branches in different locations 3.00 SS 3.47 SS 3.23 SS
Discount options 2.70 SS 3.21 SS 2.94 SS
Grand Weighted Average 3.66 S 3.77 S 3.71 S

Table 20 presents the distribution of the responses categorized based on

transmission preference. The one with the highest overall WM is the item indicating

reliable and well-maintained vehicles with 4.08 WM for manual and 4.06 for

automatic preference giving it a 4.07 overall WM and an interpretation of satisfied.

It was followed by quick reservation with 4.02 and 4.08 WM for both manual and
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 91

automatic respectively, rendering a total of 4.05 WM. Variety of vehicles for every

occasion is next with 3.98 WM for manual and 4.10 WM for automatic, having a

total of 4.04 WM.

Among the lowest scores which were interpreted as somewhat satisfied

include airport rental locations and tie up with hotel and travel agencies which both

incurred 3.37 total WM. Branches in different locations with 3.00 WM for manual,

3.47 for automatic, and 3.23 for the overall WM. Lowest is discount option with

2.70 for manual, 3.21 for automatic and 2.94 for overall WM.

The GWA for the responses are 3.66 for manual preference, 3.77 for

automatic, and 3.71 for overall GWA, which were still interpreted as satisfied.

It shows that regardless of the transmission whether automatic or manual, all

the services needed to satisfy customers play a vital role in the success of the car

rental companies

2.6. Service Preference

Table 21 presents the distribution of responses in terms of service preference.

Reliable and well-maintained vehicles got the highest WM of 4.09 for self-driven

service, 4.06 for those who prefer service with driver, giving it an overall WM of

4.07, which is classified as satisfied. Next is the variety of vehicles for every

occasion with 4.08 and 4.02 WM respectively for self driven and service with

driver, having a total of 4.04 WM which is also interpreted as satisfied. Quick

reservation followed with 4.10 for self driven, 4.00 for with driver and 4.04 WM
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 92

total. Reliable billing service with 4.12 WM for self-driven, 3.97 for service with

driver and 4.03 is the overall WM which is interpreted as satisfied

Among the low WMs are airport rental location and tie-up with hotel and travel

agencies which garnered and overall WM of 3.37. Branches in different locations

with 2.95 WM, and discount coupons with 2.95 overall WM. All of the four

responses were interpreted as somewhat satisfied.

The GWAs for the responses are 3.75 for self-driven service, 3.69 from the

responses obtained from with-driver service rendering an overall GWA of 3.71. All

GWAs are interpreted as satisfied.

Table 21 shows that customers are not dependent on the service preference

whether it is a self-driven or with driver for them to be satisfied. In this sense,

quality of vehicles, accessibility and customer service play an important role for

company’s productivity and customer satisfaction. Added features of the vehicle

can be of a great factor in giving customers their needs of comfort and happiness

when provided by TV monitor or DVD systems. It also shows that whether it is a

self-driven car or with driver, airport rental locations can greatly affect customer

satisfaction. It is hassle-free and with fast access to car rental customer service.

Others services such as tie-up with hotel and travel agencies and discount

coupons are vital in car rental operations. These companies provide coupons for

car class upgrades and discounts. Discount rates are available to customers, their

families, or anyone significant in their lives.

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 93

Table 21
Level of Satisfaction on the Services Provided by the Car Rental
Company in terms of Service Preference

Service preference
Overall
Self-driven With driver
SERVICES PROVIDED
WM VI WM VI WM VI
Variety of vehicles for every occasion 4.08 S 4.02 S 4.04 S
Reliable and well-maintained vehicles 4.09 S 4.06 S 4.07 S
Added features like GPS, TV monitor, and DVD
3.29 SS 3.49 SS 3.41 SS
systems
Ease of assistance if problem arises while on rent 3.93 S 3.87 S 3.89 S
Quick reservation 4.10 S 4.00 S 4.04 S
Reliable billing system 4.12 S 3.97 S 4.03 S
Courteous drivers 3.69 S 4.07 S 3.93 S
Free pick-up and return service 3.83 S 3.98 S 3.92 S
Discounted rates for long-term rentals (i.e. weekly,
3.93 S 3.78 S 3.84 S
monthly, yearly)
Volume discount (i.e. number of rental transactions) 3.85 S 3.75 S 3.78 S
Convenience in refunding deposits 3.81 S 3.74 S 3.76 S
Lower rates for older vehicles 3.75 S 3.72 S 3.73 S
Credit line or payment flexibility 3.86 S 3.60 S 3.70 S
Easy to locate the company or office 3.76 S 3.62 S 3.67 S
Reliable Office/Booking Staff 3.81 S 3.66 S 3.72 S
Airport rental locations 3.47 SS 3.31 SS 3.37 SS
Tie-up with hotel and travel agencies 3.48 SS 3.29 SS 3.37 SS
Branches in different locations 3.37 SS 3.13 SS 3.22 SS
Discount options 3.04 SS 2.89 SS 2.95 SS
Grand Weighted Average 3.75 S 3.69 S 3.71 S

3. Significant Difference in the Level of Satisfaction of the Customers/Clients

on the Services of the Car Rental Companies as Assessed by the
Respondents when they are Grouped According to their Profile

3.1. Age

Table 22 presents the multiple comparisons made based on the age of the

respondents and the services offered by the car rental companies. The WM of age

groups from 18 to 25 years up to above 56 years old, which were 3.75, 3.80, 3.62,
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 94

3.70, 3.70, obtained f value of 1.482 and a p-value of 0.208 which is higher than

0.05 level of significance.

This means that there is no significant difference in the level of satisfaction on

the services of the car rental companies as assessed by the respondents when

they are grouped according to Age. Thus, the hypothesis is accepted.

Table 22
Significant Difference in the Level of Satisfaction of the Customers/Clients
on the Services of the Car Rental Companies as Assessed by the
Respondents when they are Grouped according to Age

Weighted
Age f P – value Decision Remarks
Mean
18 to 25 years old 3.75
26 to 35 years old 3.80
Not
36 to 45 years old 3.62 1.482 .208 Accept H0
Significant
46 to 55 years old 3.70
Above 56 years old 3.70

3.2. Gender

Table 23
Significant Difference in the Level of Satisfaction of the Customers/clients
on the Services of the Car Rental Companies as Assessed by the
Respondents when they are Grouped according to Gender

Weighted
Gender f P – value Decision Remarks
Mean
Male 3.72 Not
.345 .731 Accept H0
Female 3.70 Significant

Table 23 presents the result of the mean assessment of the customers based

on the services offered according to gender. In comparing the WM of male and

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 95

female respondents which are 3.72 and 3.70 respectively, it can be seen the f-

value of 0.345 and the p-value of 0 .731 is higher than 0.05 level of significance,

therefore the WM of male and female variables are not significant enough to have

a difference. Thus, the hypothesis is accepted.

3.3. Occupation

Table 24
Significant Difference in the Level of Satisfaction of the Customers/clients
on the Services of the Car Rental Companies as Assessed by the
Respondents when they are Grouped according to Occupation

Weighted
Occupation f P – value Decision Remarks
Mean
Government
3.57
Official
Employee
3.79
(public/private)
Not
Entrepreneur / 1.161 .329 Accept H0
3.74 Significant
businessman
Student 3.64
Unemployed 3.63
OFW 3.69

Table 24 shows the multiple comparisons made based on the occupation of

the respondents and the services offered by the car rental companies. The WM of

the government officials which is 3.57, employee with 3.79, entrepreneur/

businessmen with 3.74, student with 3.64, unemployed which is 3.63, and OFW

with 3.69 have all obtained a p-value of 0.32 which is higher than 0.05 level of

significance.
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 96

This means that there is no significant difference in the level of satisfaction on

the services of the car rental companies as assessed by the respondents when

they are grouped according to Occupation. Thus, the hypothesis is accepted.

3.4. Frequency of Rental

Table 25
Significant Difference in the Level of Satisfaction of the Customers/client on
the Services of the Car Rental Companies as Assessed by the Respondents
when they are Grouped according to Frequency of Rental

Frequency of Weighted
f P – value Decision Remarks
Rental Mean
Weekly 3.76
Not
Monthly 3.72 .130 .878 Accept H0
Significant
Yearly 3.70

Table 25 shows the mean assessment of the customers’ frequency of rental

and the services offered. The WM of weekly rental which is 3.76, monthly with

3.72, and yearly which has 3.70 have all rendered f-value of 0.130 and a p-value of

0.878 which is higher than 0.05 level of significance. Therefore, there is no

significant difference on the level of satisfaction on the services of the car rental

companies. Thus, the hypothesis is accepted.

3.5. Transmission Preference

Table 26
Significant Difference in the Level of Satisfaction of the Customers/Client on the
Services of the Car Rental Companies as Assessed by the Respondents when
they are Grouped according to Transmission Preference

Transmission Weighted
f P – value Decision Remarks
Preference Mean
Manual 3.66 Not
-1.697 .091 Accept H0
Automatic 3.77 Significant
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 97

Table 26 reflects the mean assessment of clients based on the 3.66 and 3.77

WM for manual and automatic transmission preference. The computed p-value of

0.091 is higher than the assigned level of significance of 0.05, therefore, the

hypothesis has no significant difference between the car renter accepted

significance level in effect, making the mean is not significant. Thus, the hypothesis

is accepted.

3.6. Service Preference

Table 27
Significant Difference in the Level of Satisfaction of the Customers/client on the
Services of the Car Rental Companies as Assessed by the Respondents when
they are Grouped according to Service Preference

Service Weighted
f P – value Decision Remarks
Preference Mean
Self-driven 3.75 Not
.979 .328 Accept H0
With driver 3.69 Significant

Table 27 shows the multiple comparisons made based on the service

preference of the respondents and the services offered by the car rental

companies. The WM of self-driven is 3.75 and with driver has 3.79, computed f-

value is 0.979 and a p-value of 0.328 which is higher than 0.05 level of

significance.

This means that there is no significant difference in the level of satisfaction on

the services of the car rental companies as assessed by the respondents when

they are grouped according to service preference. Thus, hypothesis is accepted.

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 98

4. Level of Effectiveness of the Marketing Strategies of Car Rental

Companies

4.1. Product Strategy

4.1.1. Based on Form of Business Organization

Table 28
Level of Effectiveness of Product Strategy of Car Rental Company
Based on Form of Business Organization

Form of Business Organization

Single Overall
Partnership Corporation
Product Strategy Proprietorship
WM VI WM VI WM VI WM VI
Variety of vehicles for
4.57 VE 4.50 E 4.52 VE 4.54 VE
every occasion
Reliable and well-
4.87 VE 4.75 VE 4.81 VE 4.83 VE
maintained vehicles
Added features like
GPS, TV monitor and 3.33 SE 3.50 SE 3.81 E 3.55 E
DVD systems
Storage spaces 3.97 E 4.25 E 4.54 VE 4.23 E
Emergency assistance 4.47 E 4.50 E 4.85 VE 4.63 VE
Quick reservation 4.43 E 5.00 VE 4.85 VE 4.65 VE
Reliable billing system 4.47 E 4.75 VE 4.73 VE 4.60 VE
Courteous drivers 4.57 VE 4.25 E 4.73 VE 4.62 VE
Free pick-up and return
3.97 E 3.00 SE 3.13 E 3.54 E
service
Grand Weighted
4.29 E 4.28 E 4.45 E 4.36 E
Average

Table 28 presents the weighted mean distribution of the product responses

according to the form of business organization.

Reliable and well-maintained vehicles obtained a highest WM of 4.83, followed

by quick reservation with 4.65 WM, emergency assistance with 4.63 WM,

courteous drivers with 4.62 WM and reliable billing with a WM of 4.60. All of the

responses are interpreted as very effective.

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 99

Among the lowest responses are storage spaces with 4.23 WM, added

features like GPS, TV monitor and DVD systems obtained 3.55 WM and the lowest

responses of 3.54 WM of free pick-up and return service which were interpreted as

effective.

The GWAs for the responses are 4.45 for corporation, 4.29 for single

proprietorship and 4.28 for partnership with an overall GWA of 4.36. All of which

were interpreted as effective.

The data shows that all product components are effective to customers

regardless of the form of their business organization. These elements must exceed

their interests and expectations. According to Lao (2009), the services provided

must be of high quality toward continued patronage whatever organizations they

may be.

4.1.2. Number of Years of Operation

Table 29 presents the product responses in terms of number of years of

operation. Included in the top responses are reliable and well-maintained vehicles

with an overall WM of 4.84. Quick reservation with 4.66 WM and emergency

assistance with 4.64 WM. All responses were interpreted as very effective.

The lowest scores on the other hand, included storage spaces with 4.22 WM,

free pick-up and return from service with 3.60 WM, and added features like GPS,

TV monitor and DVD systems with 3.52 WM. All of which were interpreted as

effective.
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 100

The GWAs for the responses were as follows: 4.59 for those operating for 26

years and above, 4.43 for 11-15 years, 4.37 for 21-25 years, 4.36 for 1-5 years,

4.35 for 16-20 years, and 4.26 for 6-10 years. The overall GWA is 4.37 and all

were interpreted as effective.

The data below shows that car rental companies who have very effective

marketing strategies on the elements of product believe to have business

longevity. The responses show that the companies who operate 26 years and

above are consistent in delivering service quality for customer satisfaction and

retention.

Table 29
Level of Effectiveness of Product Strategy of Car Rental Company
Based on Number of Years of Operation

Number of Years Of Operation

Overall
Product 1-5 6-10 11-15 16-20 21-25 26 years
years years years years years and above
Strategy
WM VI WM VI WM VI WM VI WM VI WM VI WM VI
Variety of
vehicles for 4.46 E 4.40 E 4.43 E 4.62 VE 5.00 VE 4.83 VE 4.54 VE
every occasion
Reliable and
well-
4.85 VE 4.87 VE 4.75 VE 4.85 VE 5.00 VE 4.83 VE 4.84 VE
maintained
vehicles
Added features
like GPS, TV
3.38 SE 3.33 SE 4.38 E 3.23 SE 2.67 SE 4.17 E 3.52 E
monitor and
DVD systems
Storage
4.23 E 4.07 E 3.88 E 4.31 E 4.67 VE 4.67 VE 4.22 E
spaces
Emergency
4.62 VE 4.40 E 4.63 VE 4.69 VE 5.00 VE 5.00 VE 4.64 VE
assistance
Quick
4.69 VE 4.33 E 4.63 VE 4.85 VE 4.67 VE 5.00 VE 4.66 VE
reservation
Reliable billing
4.54 VE 4.33 E 4.63 VE 4.85 VE 4.67 VE 4.83 VE 4.60 VE
system
Courteous
4.46 E 4.40 E 4.75 VE 4.77 VE 4.67 VE 5.00 VE 4.62 VE
drivers
Free pick-up
and return 4.00 E 4.21 E 3.57 E 3.00 SE 3.00 SE 3.00 SE 3.60 E
from service
Grand
Weighted 4.36 E 4.26 E 4.43 E 4.35 E 4.37 E 4.59 VE 4.37 E
Average
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 101

4.1.3. Number of Units of Vehicles for Rent

Table 30
Level of Effectiveness of Product Strategy of Car Rental Company
Based on Number of Units of Vehicles for Rent

Number of Units of Vehicles for Rent

30 cars
Product 2-5 6-9 10-13 14-17 18-21 22-25 and Overall
Strategy above
WM VI WM VI WM VI WM VI WM VI WM VI WM VI WM VI
Variety of
vehicles for
4.73 VE 4.00 E 4.33 E 5.00 VE 4.50 E 4.75 VE 4.48 E 4.54 VE
every
occasion
Reliable
and well-
4.80 VE 4.75 VE 5.00 VE 5.00 VE 5.00 VE 4.75 VE 4.83 VE 4.83 VE
maintained
vehicles
Added
features
like GPS,
3.13 SE 3.25 SE 4.00 E 3.00 SE 4.33 E 3.50 SE 3.72 E 3.55 E
TV monitor
and DVD
systems
Storage
3.93 E 4.25 E 4.33 E 4.00 E 3.67 E 3.75 E 4.52 VE 4.23 E
spaces
Emergency
4.33 E 4.25 E 4.33 E 5.00 VE 4.67 VE 4.25 E 4.90 VE 4.63 VE
assistance
Quick
4.40 E 4.25 E 4.67 VE 4.50 E 4.67 VE 4.25 E 4.90 VE 4.65 VE
reservation
Reliable
billing 4.40 E 4.25 E 4.33 E 5.00 VE 4.67 VE 4.25 E 4.79 VE 4.60 VE
system
Courteous
4.40 E 4.25 E 4.00 E 5.00 VE 5.00 VE 4.50 E 4.79 VE 4.62 VE
drivers
Free pick-
up and
4.36 E 3.75 E 2.33 LE 3.00 SE 4.50 E 3.50 SE 3.21 SE 3.54 E
return from
service
Grand
Weighted 4.28 E 4.11 E 4.15 E 4.39 E 4.59 VE 4.17 E 4.46 E 4.36 E
Average

Table 30 presents the distribution of responses on product which were

classified based on number of vehicles for rent. Reliable and well maintained

vehicles got the highest WM of 4.83 and are interpreted as very effective. Quick

reservation and emergency assistance followed with 4.65 and 4.63 respectively,

which were also interpreted as very effective.

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 102

The grand weighted mean for the responses include 4.59 for 18-21 vehicle

which is deemed to be very effective. 4.46 for those with 60 cars and above, 4.39

for 14-17 vehicles, 4.28 for 2-5, 4.17 for 22-25, 4.15 for 10-13 cars, 4.11 for 6-9

cars and 4.11 for 6-9 vehicles. All of which were interpreted as effective. The

overall GWA which is 4.36 is likewise interpreted as effective.

Table 30 means that regardless on the number of vehicles whether big or a

small size company, well-maintained vehicles, quick reservation and well-mannered

drivers are effective marketing strategies in customer satisfaction and retention. It

can also be gleaned that bigger companies who have 30 vehicles and above have

greater effectiveness in customer assistance, quick reservations and reliable billing

systems.

4.2. Price Strategy

4.2.1. Based on Form of Business Organization

Table 31
Level of Effectiveness of Price Strategy of Car Rental Company
Based on Form of Business Organization
Forms of Business Organization
Single Overall
Partnership Corporation
Price Strategy Proprietorship
WM VI WM VI WM VI WM VI
Discounted rates for
long-term rentals (i.e. 4.57 VE 5.00 VE 4.52 VE 4.58 VE
weekly, monthly, yearly)
Volume discount (i.e.
number of rental 4.53 VE 4.50 E 4.38 E 4.47 E
transactions)
Refund deposits 4.13 E 3.25 SE 4.12 E 4.07 E
Lower rates for older
3.73 E 2.25 LE 3.77 E 3.65 E
vehicles
Credit line or payment
4.40 E 4.50 E 4.56 VE 4.47 E
flexibility
Grand Weighted
4.27 E 3.90 E 4.27 E 4.25 E
Average
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 103

Table 31 presents the distribution of responses for price classifies according

to form of business. It can be seen that discounted rates for long term rental is on

top with 4.58 WM, which is interpreted as very effective. It was followed by volume

discount and credit payment and flexibility both with 4.47 and is interpreted as

effective. Last is refund deposit with 4.07 WM which is also found to be effective.

The GWAs for the responses yield 4.27 for corporation and single

proprietorship, and 3.90 for partnership. The overall GWA is 4.25 with an

interpretation of effective.

It shows that car rental companies in any form of business organization, play

competitively in price of car rental service. They tend to lower down their rental

rates or giving discounts to customers who rent the vehicle in a long-term basis.

According to the Keywest Travel Guide (2011), prices often drop for longer rental

time periods and with substantial savings than renting on a daily basis.

4.2.2. Based on Number of Years of Operation

Table 32
Level of Effectiveness of Price Strategy of Car Rental Company
Based on Number of Years of Operation
Number of Years Of Operation
1-5 6-10 11-15 16-20 21-25 26 years Overall
Price Strategy Years years Years years years and above
WM VI WM VI WM VI WM VI WM VI WM VI WM VI
Discounted rates for
V
long-term rentals (i.e. 4.69 VE 4.27 E 4.86 VE 4.69 VE 4.67 VE 4.33 E 4.56
E
weekly, monthly,yearly)
Volume discount (i.e.
number of rental 4.85 VE 4.20 E 4.38 E 4.38 E 4.67 VE 4.33 E 4.45 E
transactions)
Refund deposits 4.38 E 3.93 E 3.57 E 3.92 E 4.00 E 4.50 E 4.05 E
Lower rates for older
3.62 E 3.40 SE 3.25 SE 4.15 E 3.00 SE 4.00 E 3.64 E
vehicles
Credit line or payment
4.38 E 4.47 E 4.43 E 4.46 E 5.00 VE 4.50 E 4.47 E
flexibility
Grand Weighted
4.38 E 4.05 E 4.11 E 4.32 E 4.27 E 4.33 E 4.24 E
Average
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 104

Table 32 shows the distribution of price responses based on years of

operation. Discounted rates for long-term rentals is the highest entry with 4.56

overall WM, which is interpreted as very effective. It was followed by volume

discount with 4.45 WM and is interpreted as effective. Third is credit line and

payment flexibility having 4.45 WM and an interpretation of effective lower rates for

older vehicles which obtained a WM of 3.64 also interpreted as effective.

The GWAs rendered include 4.38 for 1-5 years of operation, 4.33 for 26 years

and above, 4.32 for 16-20 years, 4.27 for 21-25 years, 4.11 for 11-15 years and

4.24 which is verbally interpreted as effective.

This table shows that there is no difference whether the car rental company is

a new player in the business or not when it comes to pricing effectiveness. They all

agree that the most effective way of marketing a competitive price is by offering a

long term lease so they can give a big discount to customers which usually one of

the best strategies in attracting them. Giving lower rates for older vehicles is not

applicable to all rental companies since the book value of the new and old

vehicles doesn’t have much difference and the cost for maintenance are almost the

same.

4.2.3. Based on Number of Units of Vehicles for Rent

Table 33 shows the division of responses on price as identified based on the

number of units of vehicles for rent. The highest overall WM is obtained by

discounted rates for long-term rentals with 4.58 and is verbally interpreted as very

effective. It is followed by both volume discount and credit line or payment

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 105

flexibility with 4.47 WM interpreted as effective. Refund deposit with 4.07 WM and

lower rates for older vehicles with 3.65 WM.

The GWAs for the responses include 4.34 for 30-cars and above, 4.30 for

both 14-17 and 18-21 vehicles, 4.28 for 2-5 cars, 3.95 for 6-9 vehicles, 3.87 for 10-

13 units and 4.25 for the overall GWA. All of which were found to be effective.

On this table, the big companies believe that aside from giving discount for

long-term-rentals, it is also beneficial to grant credit line or payment flexibility in

attracting customers and avail the services repeatedly. According to Futrell (2010),

customer retention occurs when companies give customers not only what they

expect, it’s about exceeding their expectations so that they become loyal

advocates for your brand.

The big companies usually have the leverage to give flexible payment

scheme compare to small scale companies. One of the greatest benefits of

reserving long term rental is the amount of time that this convenient mode of

transportation allows you to save. The clients can arrange their schedule around

planned routes and bus stops that are often not convenient to their location. In

addition, taking taxi cabs around town can become very costly and add up quickly.

It is no doubt that giving discounts for long term renters can definitely entice them

to rent. Giving customer satisfaction and increase profit.

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 106

Table 33
Level of Effectiveness of Price Strategy of Car Rental Company
Based on Number of Units of Vehicles for Rent
Number of Units of Vehicles for Rent
30 cars
Price 2-5 6-9 10-13 14-17 18-21 22-25 Overall
and above
Strategy
WM VI WM VI WM VI WM VI WM VI WM VI WM VI WM VI
Discounted
rates for
long-term
rentals (i.e. 4.53 VE 4.00 E 4.67 VE 4.00 E 5.00 VE 5.00 VE 4.62 VE 4.58 VE
weekly,
monthly,
yearly)
Volume
discount (i.e.
number of 4.73 VE 4.00 E 4.67 VE 4.00 E 4.00 E 4.25 E 4.48 E 4.47 E
rental
transactions)
Refund
4.13 E 4.00 E 3.67 E 5.00 VE 3.00 SE 3.25 SE 4.21 E 4.07 E
deposits
Lower rates
for older 3.80 E 3.50 SE 2.00 LE 3.50 SE 4.33 E 3.50 SE 3.72 E 3.65 E
vehicles
Credit line or
payment 4.20 E 4.25 E 4.33 E 5.00 VE 5.00 VE 3.75 E 4.69 VE 4.47 E
flexibility
Grand
Weighted 4.28 E 3.95 E 3.87 E 4.30 E 4.30 E 3.95 E 4.34 E 4.25 E
Average

4.3. Place Strategy

4.3.1. Based on Form of Business Organization

Table 34 reveals the distribution of responses fro place as classified according

to form of business. The overall WM shows airport rental locations and tourist

district are on top with 3.93 and 3.92 WM which is interpreted as effective. The

item branches in different locations is next with 3.87 Wm and tie-up with hotel and

travel agencies came last with 3.62 WM.

The GWA for all responses are 4.09 for corporation, 3.68 for single

proprietorship and 3.31 for partnership which were all interpreted as effective.
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 107

There is always a room for improvement in accessibility of business location.

Car rental companies do need to be visible in every location. According to Hearn

(2010), You need to be out in the marketplace for people to truly get to experience

you. After all, people buy people and not the glossy brochures.

The data blow shows that tie up with hotels, branches on different locations

and airport locations are the many ways that car rental companies need to grow

personally in order for business to flourish and one of them is being able to truly

connect with potential clients.

Table 34
Level of Effectiveness of Place Strategy of Car Rental Company
Based on Form of Business Organization

Form of Business Organization

Single Overall
Partnership Corporation
Place Strategy Proprietorship
WM VI WM VI WM VI WM VI
Tourist district 3.72 E 3.75 E 4.15 E 3.92 E
Airport rental
3.66 E 4.00 E 4.23 E 3.93 E
locations
Tie-up with the hotel
3.60 E 2.50 LE 3.81 E 3.62 E
and travel agencies
Branches in different
3.73 E 3.00 SE 4.15 E 3.87 E
locations
Grand Weighted
3.68 E 3.31 SE 4.09 E 3.83 E
Average

4.3.2. Based on Number of Years of Operation

Table 35 shows the distribution of place responses which were classified

based in the years of operation. Airport rental locations got the highest overall WM

with 3.91, followed by tourist district with 3.89 WM. Branches in different locations
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 108

with 3.83 WM and least is tie-up with hotel and travel agencies with 3.83. All

responses were interpreted as effective.

The GWAs of the responses include 4.46 for 26 years and above, 4.16 for 11-

15 years, 3.95 for 6-10 years, 3.63 for 1-5 years, and 3.50 for 16-20 years, which

were identified as effective while 21-25 years of operation received 2.92 and is

interpreted as somewhat effective.

The data shows that business visibility does matter in establishing business

longevity. Airport rental locations and branches positioning give positive impact to

car rental business productivity and greater chance of business survival.

Table 35
Level of Effectiveness of Place Strategy of Car Rental Company
Based on Number of Years of Operation

Number of Years Of Operation

Overall
26 years
1-5 6-10 11-15 16-20 21-25
Place and
years Years years years years
above
Strategy
WM VI WM VI WM VI WM VI WM VI WM VI WM VI

Tourist district 3.92 E 3.93 E 4.25 E 3.54 E 3.33 SE 4.33 E 3.89 E

Airport rental
3.58 E 4.00 E 4.25 E 3.54 E 3.67 E 4.83 VE 3.91 E
locations
Tie-up with the
hotel and travel 3.62 E 3.80 E 4.00 E 3.15 SE 2.67 SE 3.83 E 3.59 E
agencies
Branches in
different 3.38 SE 4.07 E 4.13 E 3.77 E 2.00 LE 4.83 VE 3.83 E
locations
Grand
Weighted 3.63 E 3.95 E 4.16 E 3.50 SE 2.92 SE 4.46 E 3.81 E
Average
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 109

4.3.3. Based on Number of Units of Vehicles for Rent

Table 36
Level of Effectiveness of Place Strategy of Car Rental Company
Based on Number of Units of Vehicles for Rent

Number of Units of Vehicles for Rent

30 cars
Place 2-5 6-9 10-13 14-17 18-21 22-25 and Overall
Strategy above
WM VI WM VI WM VI WM VI WM VI WM VI WM VI WM VI
Tourist
3.86 E 2.50 LE 3.67 E 4.50 E 3.67 E 4.00 E 4.14 E 3.92 E
district
Airport
rental 3.79 E 2.50 LE 2.33 LE 5.00 VE 3.67 E 4.25 E 4.28 E 3.93 E
locations
Tie-up
with
hotels 3.40 SE 3.25 SE 3.00 SE 4.50 E 4.00 E 4.50 E 3.62 E 3.62 E
and travel
agencies
Branches
in
3.67 E 3.00 SE 2.67 SE 4.50 E 3.67 E 4.75 VE 4.07 E 3.87 E
different
locations
Grand
Weighted 3.68 E 2.81 SE 2.92 SE 4.63 VE 3.75 E 4.38 E 4.03 E 3.83 E
Average

Table 36 presents the distribution of responses for place which were

classified based on the number of units of vehicles for rent. Airport rental locations

is on top of the overall WM with 3.93, followed by tourist district with 3.92. Third is

branches in different locations with 3.87, and last is tie-up with hotels and travel

agencies with 3.62 WM.

The GWAs for the answers were 4.63 interpreted as very effective for 14-17

units. The ones interpreted as effective include 4.38 for 22-25, 4.03 for 30 and

above, 3.75 for 18-21 units, and 3.68 for 2-5 cars. 10-13 and 6-9 units had a GWA
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 110

of 2.92 and 2.81 respectively, and are interpreted as somewhat serious. The

overall GWA is 3.83 which are interpreted as effective.

These data show that small car rental companies have no capability of having

a strategic office location or branches in different places since the investment is not

yet ideal for small scale company but for bigger companies, putting up branches in

different location is an effective marketing strategy to increase productivity and

business visibility

4.4. Promotion Strategy

4.4.1. Based on Form of Business Organization

Table 37
Level of Effectiveness of Promotion Strategy of Car Rental Company
Based on Form of Business Organization

Form of Business
Single Overall
Partnership Corporation
Promotion Strategy Proprietorship
WM VI WM VI WM VI WM VI
Newspaper 2.33 LE 1.50 IE 2.52 SE 2.36 LE
Discount coupons 2.20 LE 2.25 LE 2.60 SE 2.37 LE
Telemarketing 3.97 E 4.25 E 3.81 E 3.92 E
Public relations 4.23 E 3.75 E 3.73 E 3.98 E
Referrals 5.00 VE 4.50 E 4.54 VE 4.77 E
Trade shows 2.20 LE 1.50 IE 1.96 LE 2.05 LE
Word of mouth 4.90 E 5.00 VE 4.73 VE 4.83 VE
Web advertising 4.97 VE 5.00 VE 4.85 VE 4.92 VE
Grand Weighted
3.73 E 3.47 SE 3.60 E 3.65 E
Average

Table 37 presents the items for promotion classified in terms on the forms of

business organization. The highest overall WM is the web advertising with 4.92
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 111

with verbal interpretation of very effective, followed by word of mouth with 4.8 WM.

Next to it is referrals with 4.77 WM.

Among the less effective forms of promotion are discount coupons with 2.37

WM. This is followed by newspaper with 2.36 WM and last is trade shows with

2.05 WM.

The GWA of the responses are 3.73 for single proprietorship (effective), 3.60

for corporations (effective), and 3.47 which is somewhat effective. The overall

GWA is 3.65 and is interpreted as effective.

It means that all forms of business organization believe in the effectiveness

of web advertising as their promotional tool. According to Arthur (2009), one of the

most effective ways for you to promote a business is to use an online promotion

strategy. With this type of strategy, one can reach a massive audience or focus in

on a specific group of people to market to. One could choose to display advertising

on related websites or send out emails to market to one’s target market. On the

other hand, newspaper is the least effective as ad space can be expensive and

expect one’s ad to have a short shelf life, as newspapers are usually read once

and then discarded.

4.4.2. Based on Number of Years of Operation

Table 38 displays the responses on promotion as classified based on the

years of operation. The web advertisement obtained the highest overall WM with

4.91 which is interpreted as very effective, followed by word of mouth with 4.83

WM and referrals with 4.78 WM, which were all interpreted as very effective.
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 112

Among those with lower WM are the newspaper and discount coupons both

with 2.40 WM and trade shows with 2.02. The given responses received less

effective interpretation.

The GWAs for the responses are 3.76 for 6-10 years, 3.74 for 1-5 years, 3.64

for 11-15 years, 3.63 both for 16-20 years and 26 years and above. All of which

were interpreted as effective except for those operating for 21-25 years which

received a 2.92 WM. The overall GWA for the responses is 3.65 which is

interpreted as effective.

These data show that new players (1-5 years and 6-10 years) in car rental

business are more assertive in promoting the company and web advertising is the

most effective tool. It displays possibilities and advertisement space. The company

profile, brochures, catalogues can be digitalized and put on the web. By putting

promotional materials on the web, one saves on printing costs while one is able to

update the information at any point in time without substantial costs.

Table 38
Level of Effectiveness of Promotion Strategy of Car Rental Company
Based on Number of Years of Operation

Number of Years Of Operation

1-5 6-10 11-15 16-20 21-25 26 years Overall
Promotion
years years years years years and above
Strategy
WM VI WM VI WM VI WM VI WM VI WM VI WM VI
Newspaper 2.31 LE 2.67 SE 2.29 LE 2.08 LE 2.33 LE 2.83 SE 2.40 LE
Discount
2.23 LE 2.57 SE 2.50 LE 2.23 LE 2.33 LE 2.67 SE 2.40 LE
coupons
Telemarketing 4.00 E 3.87 E 3.75 E 4.23 E 1.67 LE 4.33 E 3.90 E
Public relations 4.31 E 4.13 E 4.63 VE 3.54 E 2.67 SE 3.50 SE 3.97 E
Referrals 4.92 VE 4.87 VE 4.63 VE 4.92 VE 3.67 E 4.67 VE 4.78 VE
Trade shows 2.31 LE 2.40 LE 1.25 IE 2.15 LE 1.33 IE 1.50 IE 2.02 LE
Word of mouth 4.85 VE 4.80 VE 5.00 VE 4.92 VE 4.67 VE 4.50 E 4.83 VE
Web advertising 5.00 VE 4.73 VE 5.00 VE 5.00 VE 4.67 VE 5.00 VE 4.91 VE
Grand Weighted
3.74 E 3.76 E 3.64 E 3.63 E 2.92 SE 3.63 E 3.65 E
Average
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 113

4.4.3. Based on Number of Units of Vehicles for Rent

Table 39
Level of Effectiveness of Promotion Strategy of Car Rental Company
Based on Number of Units of Vehicles for Rent

Number of Units of Vehicles for Rent

30 cars
Promotion 2-5 6-9 10-13 14-17 18-21 22-25 and Overall
Strategy above
WM VI WM VI WM VI MM VI WM VI WM VI MM VI WM VI
Newspaper 2.40 LE 1.75 LE 1.33 IE 2.00 LE 2.50 LE 2.25 LE 2.55 SE 2.36 LE
Discount
2.40 LE 1.50 IE 1.33 IE 1.50 IE 2.00 LE 2.25 LE 2.71 SE 2.37 LE
coupons
Telemarketing 4.00 E 3.75 E 3.00 SE 4.00 E 3.33 SE 4.50 E 3.97 E 3.92 E
Public relations 4.87 VE 2.25 LE 2.00 LE 4.50 E 4.00 E 4.75 VE 3.83 E 3.98 E
Referrals 5.00 VE 5.00 VE 4.67 VE 5.00 VE 4.00 E 4.75 VE 4.69 VE 4.77 VE
Trade shows 2.33 LE 1.50 IE 1.00 IE 1.00 IE 1.33 IE 1.50 IE 2.31 LE 2.05 LE
Word of mouth 4.80 VE 5.00 VE 4.67 VE 5.00 VE 5.00 VE 5.00 VE 4.79 VE 4.83 VE
Web
5.00 VE 5.00 VE 5.00 VE 5.00 VE 5.00 VE 5.00 VE 4.83 VE 4.92 VE
advertising
Grand
Weighted 3.85 E 3.22 SE 2.88 SE 3.50 SE 3.40 SE 3.75 E 3.71 E 3.65 E
Average

Table 39 presents the responses for promotion categorized based on number

of units of vehicles for rent. Web advertising is still the highest with 4.92 WM

followed by word mouth with 4.83 and referrals with 4.77 WM. All of which are

interpreted as very effective.

Among those with lower WM are the newspaper with 3.36, the discount

coupons with 2.37 and the trade shows with 2.05 WM, which were interpreted as

less effective. The overall GWA for all responses is 3.65 which is verbally

interpreted as effective.

It shows that regardless of the numbers of vehicles for rent, car rental

companies should choose the best promotional tools that best fit the business

objectives. Business promotion doesn’t have to be expensive. Web advertising,

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 114

referrals and word-of-mouth are the most effective tools and yet affordable but it

depends on how the business establish a positive image in order to gain positive

results.

5. Significant Difference in the Level of Effectiveness of the Marketing

Strategies of the Car Rental Companies as Assessed by the Respondents
when they are Grouped According to their Profile.

5.1. Product Strategy

5.1.1. Based on Form of Business Organization

Table 40
Significant Difference in the Level of Effectiveness of Product Strategy of Car
Rental Company as Assessed by the Respondents when Grouped
According to the Form of Business Organization

Form of Business Weighted

f P – value Decision Remarks
Organization Mean
Single
4.29
proprietorship Not
1.736 .185 Accept H0
Partnership 4.28 Significant
Corporation 4.45

Table 40 presents the mean assessment of the form of business compared

with the product. The weighted mean for single proprietorship with 4.29,

partnership with 4.28 and corporation with 4.45, computed f-value is 1.736 and a p-

value of 1.85 which is higher than the level of significance which is 0.05.

This means that there is no significant difference in the level of effectiveness of

product as assessed by the respondents when grouped according to the forms of

business organization. Thus, the hypothesis is accepted

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 115

5.1.2. Based on Number of Years of Operation

Table 41
Significant Difference in the Level of Effectiveness of Product Strategy of Car
Rental Company as Assessed by the Respondents when Grouped
According to the Number of Years of Operation

Number of Years Weighted

f P – value Decision Remarks
of Operation Mean

1 – 5 years 4.36
6 – 10 years 4.26
11 – 15 years 4.43
Not
16 – 20 years 4.35 .914 .480 Accept H0
Significant
21 – 25 years 4.37
26 years and
4.59
above

Table 41 presents the mean assessment of the years of operation compared

with product. The weighted mean for 1-5 years which is 4.36, 6-10 years with

4.26, 11-15 years which is 4.43 16-20 years, 21-25 years which is 4.37 and 26

years and above, computed f-value is 0.914 and a p-value of 0.480 which is higher

than the level of significance which is 0.05.

This means that there is no significant difference in the level of effectiveness of

product as assessed by the respondents when grouped according to the number of

years of operation. Thus, the hypothesis is accepted.

5.1.3. Based on Number of Units of Vehicles for Rent

Table 42 presents the mean assessment of number of units of vehicles for rent

compared with product. The WM of the number of units of vehicle which are 2-5

with 4.28, 6-9 with 4.11, 10-13 with 4.15, 14-17 which is 4.39, 18-21 with 4.59, 22-
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 116

25 with 4.17 and 30 and above units with 4.46 WM, computed f-value is 1.751 and

p-value of 0.127 which is higher than 0.05 level of significance.

This means that there is no significant difference in the level of effectiveness of

product as assessed by the respondents when grouped according to the number of

units of vehicles for rent. Thus, the hypothesis is accepted.

Table 42
Significant Difference in the Level of Effectiveness of Product Strategy of Car
Rental Company as Assessed by the Respondents when Grouped
According to the Number of Units of Vehicles for Rent

Number of Units of Weighted

f P – value Decision Remarks
Vehicles for Rent Mean
2–5 4.28
6–9 4.11
10 – 13 4.15
14 – 17 4.39 1.751 .127 Accept H0 Not Significant
18 – 21 4.59
22 – 25 4.17
30 cars and above 4.46

5.2. Price Strategy

5.2.1. Based on Form of Business Organization

Table 43
Significant Difference in the Level of Effectiveness of Price Strategy of Car
Rental Company as Assessed by the Respondents when Grouped
According to the Form of Business Organization

Weighted
Form of Business f P – value Decision Remarks
Mean
Single
4.27
proprietorship Not
.829 .442 Accept H0
Partnership 3.90 Significant
Corporation 4.27

Table 43 shows the mean assessment of the forms of business organization

compared with price. The weighted mean for single proprietorship with 4.27,
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 117

partnership with 3.90 and corporation with 4.27, computed f-value is 0.829 and a p-

value of 0.442 which is higher than the level of significance of 0.05.

This means that there is no significant difference in the level of effectiveness of

price as assessed by the respondents when grouped according to the forms of

business organization. Thus, the hypothesis is accepted.

5.2.2. Based on Number of Years of Operation

Table 44
Significant Difference in the Level of Effectiveness of Price Strategy of Car
Rental Company as Assessed by the Respondents when Grouped
According to the Number of Years of Operation

Number of Years Weighted

f P – value Decision Remarks
of Operation Mean
1 – 5 years 4.38
6 – 10 years 4.05
11 – 15 years 4.11
Not
16 – 20 years 4.32 .663 .653 Accept H0
Significant
21 – 25 years 4.27
26 years and
4.33
above

Table 44 illustrates the mean assessment of the years of operation compared

with price. The weighted mean for 1-5 years with 4.38, 6-10 years with 4.05, 11-15

years with 4.11, 16-20 years with 4.32, 21-25 years which is 4.27 and 26 years

and above with 4.33, computed f-value is 0.663 and a p-value of 0.653 which is

higher than 0.05 level of significance.

This means that there is no significant difference in the level of effectiveness of

price as assessed by the respondents when grouped according to the number of

years of operation. Thus, the hypothesis is accepted.

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 118

5.2.3. Based on Number of Units of Vehicles for Rent

Table 45
Significant Difference in the Level of Effectiveness of Price Strategy of Car
Rental Company as Assessed by the Respondents when Grouped
According to the Number of Units of Vehicles for Rent

Number of Units of Weighted

f P – value Decision Remarks
Vehicles for Rent Mean
2–5 4.28
6–9 3.95
10 – 13 3.87
Not
14 – 17 4.30 .755 .609 Accept H0
Significant
18 – 21 4.30
22 – 25 3.95
30 cars and above 4.34

Table 45 displays the mean assessment of number of units of vehicles for rent

compared with price. The WM of the units of vehicle which are 2-5 with 4.28, 6-9

with 3.95, 10-13 with 3.87, 14-17 with 4.30, 18-21 with 4.30, 22-25 with 3.95 and 30

and above with 4.34, computed f-value is 0.755 and a p-value of 0.609 which is

higher than 0.05 level of significance.

This means that there is no significant difference in the level of effectiveness of

price as assessed by the respondents when grouped according to the number of

years of operation. Thus, the hypothesis is accepted.

5.3. Place Strategy

5.3.1. Based on Form of Business Organization

Table 46 displays the mean assessment of the form of business compared

with place. The weighted mean for single proprietorship with 3.68, partnership with
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 119

3.31 and corporation which is 4.09, computed f-value is 1.578 and a p-value of

0.215 which is higher than 0.05 level of significance.

This means that there is no significant difference in the level of effectiveness of

place as assessed by the respondents when grouped according to the forms of

business organization. Thus, the hypothesis is accepted.

Table 46
Significant Difference in the Level of Effectiveness of Place Strategy of Car
Rental Company as Assessed by the Respondents when Grouped
According to the Form of Business Organization

Form of Business Weighted

f P – value Decision Remarks
Organization Mean
Single
3.68
proprietorship Not
1.578 .215 Accept H0
Partnership 3.31 Significant
Corporation 4.09

5.3.2. Based on Number of Years of Operation

Table 47 presents the mean assessment of the years of operation compared

with place. The weighted mean for 1-5 years with 3.63, 6-10 years with 3.95, 11-

15 years with 4.16, 16-20 years with 3.50, 21-25 years with 2.92 and 26 years and

above with 4.46. Computed f-value is 1.453 and a p-value of 0.221 which is higher

than 0.05 level of significance.

The table below means that there is no significant difference in the level of

effectiveness of place as assessed by the respondents when grouped according to

the number of years of operation. Thus, the hypothesis is accepted.

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 120

Table 47
Significant Difference in the Level of Effectiveness of Place Strategy of Car
Rental Company as Assessed by the Respondents when Grouped
According to the Number of Years of Operation

Number of Years Weighted

f P – value Decision Remarks
of Operation Mean
1 – 5 years 3.63
6 – 10 years 3.95
11 – 15 years 4.16
Not
16 – 20 years 3.50 1.453 .221 Accept H0
Significant
21 – 25 years 2.92
26 years and
4.46
above

5.3.3. Based on Number of Units of Vehicles for Rent

Table 48
Significant Difference in the Level of Effectiveness of Place Strategy of Car
Rental Company as Assessed by the Respondents when Grouped
According to the Number of Units of Vehicles for Rent

Number of Units of Weighted

f P – value Decision Remarks
Vehicles for Rent Mean
2–5 3.68
6–9 2.81
10 – 13 2.92
Not
14 – 17 4.63 1.701 .139 Accept H0
Significant
18 – 21 3.75
22 – 25 4.38
30 cars and above 4.03

Table 48 reveals the mean assessment of number of units of vehicles

compared with place. The WM of the units of vehicle which are 2-5 with 3.68, 6-9

with 2.81, 10-13 with 3.92, 14-17 which is 4.63, 18-21 with 3.75, 22-25 with 4.38

and 30 and above with 4.03 have resulted to f-value of 1.701 and a p-value of

0.139 which is higher than 0.05 level of significance.

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 121

This means that there is no significant difference in the level of effectiveness of

place as assessed by the respondents when grouped according to the number of

units of vehicles. Thus, the hypothesis is accepted.

5.4. Promotion Strategy

5.4.1. Based on Form of Business Organization

Table 49
Significant Difference in the Level of Effectiveness of Promotion Strategy of Car
Rental Company as Assessed by the Respondents when Grouped
According to the Form of Business Organization

Form of Business Weighted

f P – value Decision Remarks
Organization Mean
Single
3.73
proprietorship Not
.493 .215 Accept H0
Partnership 3.47 Significant
Corporation 3.60

Table 49 presents the mean assessment of the forms of business organization

compared with promotion. The weighted mean for single proprietorship with 3.73,

partnership with 3.47 and corporation with 3.60 have rendered the f-value of 0.493

and a p-value of 0.215 which is higher than 0.05 level of significance.

This means that there is no significant difference in the level of effectiveness of

promotion as assessed by the respondents when grouped according to the forms of

business organization. Thus, the hypothesis is accepted.

5.4.2. Based on Number of Years of Operation

Table 50 reveals the mean assessment of the number of years of operation

compared with promotion. The weighted mean for 1-5 years which is 3.74, 6-10

years with 3.76, 11-15 years which is 3.64, 16-20 years with 3.63, 21-25 years
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 122

which is 2.92 and 26 years and above with 3.63, computed f-value of 1.020 and

have rendered a p-value of 0.416 which is higher than the level of significance

which is 0.05.

This means that there is no significant difference in the level of effectiveness of

promotion as assessed by the respondents when grouped according to the number

of years of operation. Thus, the hypothesis is accepted

Table 50
Significant Difference in the Level of Effectiveness of Promotion Strategy of Car
Rental Company as Assessed by the Respondents when Grouped
According to the Number of Years of Operation

Number of Years of Weighted

f P – value Decision Remarks
Operation Mean
1 – 5 years 3.74
6 – 10 years 3.76
11 – 15 years 3.64
1.020 .416 Accept H0 Not Significant
16 – 20 years 3.63
21 – 25 years 2.92
26 years and above 3.63

5.4.3. Based on Number of Units of Vehicles for Rent

Table 51
Significant Difference in the Level of Effectiveness of Promotion Strategy of Car
Rental Company as Assessed by the Respondents when Grouped
According to the Number of Units of Vehicles for Rent

Number of Units of Weighted

f P – value Decision Remarks
Vehicles for Rent Mean
2–5 3.85
6–9 3.22
10 – 13 2.88
14 – 17 3.50 1.691 .141 Accept H0 Not Significant
18 – 21 3.40
22 – 25 3.75
30 cars and above 3.71
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 123

Table 51 illustrates the mean assessment of number of units of vehicles for

rent compared with promotion. The WM of the units of vehicle which are 2-5 with

3.85, 6-9 with 3.22, 10-13 with 2.88, 14-17 which is 3.5, 18-21 with 3.40, 22-25 with

3.75 and 30 and above with 3.71 have resulted to f-value of 1.691 and a p-value of

0.141 which is higher than 0.05 level of significance.

This means that there is no significant difference in the level of effectiveness of

promotion as assessed by the respondents when grouped according to the number

of units of vehicles for rent. Thus, the hypothesis is accepted.

6. Problems Encountered by Car Rental Companies when Grouped

According to their Profile

6.1. As to Form of Business Organization

Table 52 illustrates the responses for problems encountered by car rental

companies as identified based on the forms of business. On top of the list is

intense industry competition with 3.56 WM and is interpreted as serious. Next to it

is economic downturn which is interpreted as somewhat serious with a WM of 2.92

and fluctuation of fuel cost and supplies which yielded a 2.78 WM and an

interpretation of somewhat serious.

Among the lower WM is irresponsible driver with 2.05 WM. It was followed by

credit card fraud with 1.91 and extended rental due dates with 1.83 WM. Both were

interpreted as less serious.

The GWAs for the problem responses were 2.69 for single proprietors and

partnership and were interpreted as less serious while corporations had 2.22 which
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 124

also has a verbal interpretation of less serious. The overall GWA is 2.49 and is

interpreted as less serious.

Car rental business has historically been one of the most competitive in the

country. It is believed that the principal bases of competition in our markets are

breadth of product line, quality of products, stability, reliability and reputation of the

provider, along with cost, quantity discounts and price erosion. Industries develop

and evolve over time. Not only has the group of competitors within a firm’s industry

changed constantly, but also the nature and structure of the business can change

as it matures.

In NCR alone, there are 80 car rental companies registered in the Department

of Tourism (Sept.2011) not to mention illegal car rental companies operating inside

and outside tourist locations. All forms of business organization must be alarmed

with the intensity of competition and to garner competitive advantage among the

competitors, companies must have the ability to offer service at a lower cost than its

competitors, which gives the firm the ability sell its goods or services at a lower

price than its competition. It can also be a differential advantage when a firm's

services differ from its competitors and are seen as better than a competitor's

products by customers (Collis, 2009).

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 125

Table 52
Problems Encountered by the Car Rental Companies
As to Form of Business Organization

Form of Business
Overall
Single
Problems Partnership Corporation
Proprietorship
WM VI WM VI WM VI WM VI
Fake passport, invalid identification
2.50 LS 1.25 NP 2.00 LS 2.20 LS
cards and other documents
Credit card fraud 2.13 LS 1.75 LS 1.67 LS 1.91 LS
Client’s inability to pay 2.90 SS 3.75 S 2.16 LS 2.64 SS
Intense industry competition 3.57 S 4.50 S 3.40 SS 3.56 S
Scarcity of demand 3.00 SS 3.00 SS 2.20 LS 2.66 SS
No GPS navigation 2.83 SS 2.50 LS 1.96 LS 2.44 LS
Extended rental due dates 1.93 LS 2.50 LS 1.60 LS 1.83 LS
Irresponsible and dishonest drivers 2.21 LS 2.00 LS 1.88 LS 2.05 LS
Stolen vehicles 2.63 SS 2.75 SS 2.33 LS 2.52 SS
Fluctuation in fuel costs and supplies 2.93 SS 3.25 SS 2.52 SS 2.78 SS
Economic downturn 3.07 SS 2.75 SS 2.76 SS 2.92 SS
Road mishaps and accidents 2.87 SS 3.00 SS 2.24 LS 2.61 SS
Public liability and property damage 2.40 SS 2.00 LS 2.12 LS 2.25 LS
Grand Weighted Average 2.69 SS 2.69 SS 2.22 LS 2.49 LS

6.2. As to Number of Years of Operation

Table 53 presents the problems encountered as classified in terms of years of

operation. Intense industry competition is on top with 3.61 WM, interpreted as

serious. Next is economic downturn with 2.93 WM and fluctuation of fuel cost and

supplies with 2.79 WM. Both were interpreted as somewhat serious.

The ones with the lowest WMs include irresponsible and dishonest drivers

with 2.07, credit card fraud 1.95 WM and extended rental due dates with 1.84 WM.

All were interpreted as less serious.

The GWAs for the responses include 2.98 for 1-5 years of operation, 2.61 for

6-10 years, both interpreted as somewhat serious. 2.41 for 16-20 years, 2.31 for

11-15 years, 2.21 for 21-25 years and 1.90 for 26 years and above which were
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 126

interpreted as less serious. The overall GWA which is 2.52 is interpreted as

somewhat serious.

It shows that car rental companies operating from 1-15 years considered the

problems they encountered as somewhat serious particularly the intense industry

competition and economic downturn. Perhaps, companies who have been

operating for quite some time say more than 15 years have already adjusted or

came up with some strategies for the prevention or minimizing these problems. Car

rental owners must be helpful, professional and most importantly honest in dealing

with clients that go above and beyond to make the customers happy and contented.

Table 53
Problems Encountered by the Car Rental Companies
As to Number of Years of Operation
Number of Years Of Operation
1-5 6-10 11-15 16-20 21-25 26 years Overall
Problems years years years years years and above
WM VI WM VI WM VI WM VI WM VI WM VI WM VI
Fake passport, invalid
identification cards and 3.08 SS 1.80 LS 2.29 LS 1.92 LS 2.33 LS 2.17 LS 2.25 LS
other documents
Credit card fraud 2.38 LS 2.07 LS 1.86 LS 1.69 LS 1.33 NP 1.67 LS 1.95 LS
Client’s inability to pay 3.62 S 2.53 SS 2.71 SS 2.23 LS 3.00 SS 1.83 LS 2.68 SS
Intense industry
3.92 S 3.67 S 3.86 S 3.38 SS 3.67 S 3.00 SS 3.61 S
competition
Scarcity of demand 3.15 SS 3.13 SS 2.00 LS 2.62 SS 1.67 LS 2.00 LS 2.68 SS
No GPS navigation 3.00 SS 2.33 LS 1.86 LS 2.54 SS 3.00 SS 2.00 LS 2.47 LS
Extended rental due
2.31 LS 1.80 LS 1.57 LS 1.92 LS 1.00 NP 1.50 NP 1.84 LS
dates
Irresponsible and
2.46 LS 2.29 LS 2.14 LS 2.00 LS 1.33 NP 1.17 NP 2.07 LS
dishonest drivers
Stolen vehicles 3.08 SS 2.43 LS 1.86 LS 2.77 SS 2.00 LS 2.00 LS 2.52 SS
Fluctuation in fuel costs
3.31 SS 2.67 SS 2.71 SS 2.92 SS 2.33 LS 2.00 LS 2.79 SS
and supplies
Economic downturn 3.08 SS 3.27 SS 2.43 LS 2.69 SS 3.67 S 2.50 LS 2.93 SS
Road mishaps and
3.08 SS 3.07 SS 2.43 LS 2.46 LS 2.00 LS 1.50 NP 2.63 SS
accidents
Public liability and
2.31 LS 2.80 SS 2.29 LS 2.23 LS 1.33 NP 1.33 NP 2.26 LS
property damage
Grand Weighted
2.98 SS 2.61 SS 2.31 LS 2.41 LS 2.21 LS 1.90 LS 2.52 SS
Average
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 127

6.3. As to Number of Units of Vehicles for Rent

Table 54
Problems Encountered by the Car Rental Companies
As to Number of Units of Vehicles for Rent
Number of Units of Vehicles for Rent
30 cars
2-5 6-9 10-13 14-17 18-21 22-25 Overall
Problems and above
WM VI WM VI WM VI WM VI WM VI WM VI WM VI WM VI
Fake
passport,
invalid
identificatio 2.60 SS 2.75 SS 1.33 NP 1.00 NP 3.50 SS 2.50 LS 1.97 LS 2.20 LS
n cards and
other
documents
Credit card
2.60 SS 1.50 NP 1.00 NP 1.00 NP 2.50 LS 2.50 LS 1.64 LS 1.91 LS
fraud
Client’s
inability to 3.07 SS 3.00 SS 2.33 LS 2.00 LS 3.00 SS 2.50 LS 2.45 LS 2.64 SS
pay
Intense
industry 3.60 S 3.75 S 3.33 SS 4.00 S 4.50 S 3.00 SS 3.52 S 3.56 S
competition
Scarcity of
3.13 SS 3.00 SS 2.67 SS 2.00 LS 3.50 SS 3.00 SS 2.31 LS 2.66 SS
demand
No GPS
2.47 LS 3.25 SS 3.33 SS 3.00 SS 3.50 SS 2.50 LS 2.10 LS 2.44 LS
navigation
Extended
rental due 2.00 LS 2.00 LS 2.00 LS 1.00 NP 2.50 LS 2.50 LS 1.62 LS 1.83 LS
dates
Irresponsibl
e and
2.20 LS 2.50 LS 2.50 LS 1.50 NP 2.00 LS 2.50 LS 1.86 LS 2.05 LS
dishonest
drivers
Stolen
2.80 SS 2.50 LS 1.67 LS 1.50 NP 4.00 S 2.50 LS 2.43 LS 2.52 SS
vehicles
Fluctuation
in fuel costs
3.20 SS 2.75 SS 2.00 LS 2.00 LS 3.50 SS 3.00 SS 2.62 SS 2.78 SS
and
supplies
Economic
3.40 SS 2.50 LS 2.00 LS 2.50 LS 3.00 SS 2.75 SS 2.86 SS 2.92 SS
downturn
Road
mishaps
3.27 SS 2.75 SS 1.67 LS 2.00 LS 2.50 LS 3.00 SS 2.34 LS 2.61 SS
and
accidents
Public
liability and
2.67 SS 2.00 LS 1.00 NP 1.50 NP 2.50 LS 3.00 SS 2.14 LS 2.25 LS
property
damage
Grand
Weighted 2.85 SS 2.63 SS 2.05 LS 1.92 LS 3.12 SS 2.71 SS 2.30 LS 2.49 LS
Average
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 128

Table 54 presents the problems encountered categorized based on the

number of units of vehicles for rent. The highest WMs interpreted as serious is

intense industry competition with 3.56 WM. It is followed by economic downturn

with 2.92 and fluctuation in fuel cost and supplies with 2.78. Both were deemed

less serious.

The low WMs on the other hand are irresponsible and dishonest drivers with

2.05 WM, credit card fraud with 1.91 WM and extended rental due dates with 1.83

WM. All were interpreted as less serious. The overall GWA for the responses is

2.49 interpreted as less serious.

This data shows that regardless on the number of units of vehicles for hire,

problems can be encountered any moment. According to “Investor Campus”, due to

the economic conditions and the competitive nature of the industry, car rental

companies have to focused on creating an affordable and flexible capital structure

or favorable and suitable lending arrangements.

7. Problems Encountered by the Car Rental Customers/Clients on the

Services of the Car Rental Companies when Grouped According to their
Profile

7.1. Based on Age

Table 55 presents the problems encountered by the customers. Almost all the

responses were verbally interpreted as less serious except for one which is the

scarcity of cars during peak season which received a 2.51 overall WM and is

interpreted as somewhat serious. Vehicle breakdown came in next with an overall

WM of 2.48.
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 129

Third is charging extra cost for extra mileage and extended hours with an

overall WM of 2.32. It was followed by no replacement of vehicles in case of

breakdown which obtained a 2.29 overall WM. Fifth is that there is no insurance

coverage and unreturned lost items which both received a 2.23 WM, followed by

poor customer service with 2.21 WM. The items charging for dents and scratches,

hidden charges with n back up documentation and overcharging fuel consumptions

on the other hand, have all obtained a 2.14 WM. The item additional fee for the

driver has obtained a 2.14 WM. It was followed by charging for roadside assistance

with 2.12 WM. Next problem is car theft which received a 2.11 WM. 11 th on the

rank is false rate advertisement with 2.09 WM. Disrespectful drivers came in next

with 2.07 WM. And the last is misinformation on company policies which received a

2.06 WM.

The grand weighted mean ranked according to age were as follows: 2.64

WM, interpreted as somewhat serious was obtained by responses given by

customers belonging to age 18-25 range. It was followed by responses from the 56

above age bracket which rendered 2.30 WM. Next are those under the 26-35 age

range with 2.21 WM. Fourth is 2.18 WM given by respondents belonging to 46-55

age bracket. Last is a 2.06 WM given by those under 36-45 age range. The last four

WM were given an interpretation of less serious giving everything a grand WM of

2.21 which is also interpreted as less serious.

Table 55 data shows that scarcity of cars during peak season is somewhat a

serious problem regardless of how young or old is the renter. The car rental
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 130

business is subject to seasonal variations in customer demand. The general

seasonal variation in demand along with more localized changes in demand at

different locations causes the fleet size to vary over the course of the year which

results to insufficient supply of vehicles for rent.

Table 55
Problems Encountered by the Car Rental Customers/Clients
Based on Age

Age
Above Overall
18-25 y/o 26-35 y/o 36-45 y/o 46-55 y/o
PROBLEMS 56 y/0
WM VI WM VI WM VI WM VI WM VI WM VI
Vehicle Breakdown 2.81 SS 2.54 SS 2.41 LS 2.23 LS 2.75 SS 2.48 LS
Scarcity of cars during peak
3.05 SS 2.53 SS 2.35 LS 2.37 LS 2.67 SS 2.51 SS
season
No replacement of vehicles in
2.80 SS 2.21 LS 2.24 LS 2.10 LS 2.64 SS 2.29 LS
case of breakdown
Poor customer service 2.64 SS 2.09 LS 2.14 LS 2.25 LS 2.33 LS 2.21 LS
Car theft (car napping and
2.56 SS 2.13 LS 1.90 LS 2.13 LS 2.36 LS 2.11 LS
carjacking)
Charging extra cost for extra
2.86 SS 2.27 LS 2.17 LS 2.33 LS 2.36 LS 2.32 LS
mileage and extended hours
Additional fee for the driver 2.65 SS 2.10 LS 2.00 LS 2.08 LS 2.17 LS 2.13 LS
Disrespectful drivers 2.54 SS 2.13 LS 1.92 LS 1.90 LS 2.08 LS 2.07 LS
Overcharging fuel
2.59 SS 2.17 LS 1.95 LS 2.06 LS 2.33 LS 2.14 LS
consumption
Charging for dents/scratches 2.46 LS 2.26 LS 1.94 LS 2.04 LS 2.33 LS 2.14 LS
Misinformation on company
2.37 LS 2.14 LS 1.87 LS 2.12 LS 1.92 LS 2.06 LS
policies
Charging pick-up and delivery
2.56 SS 2.22 LS 2.04 LS 2.33 LS 2.00 LS 2.21 LS
service
No insurance coverage 2.75 SS 2.17 LS 2.01 LS 2.35 LS 2.36 LS 2.23 LS
False rate advertisement 2.56 SS 2.15 LS 1.85 LS 2.10 LS 2.09 LS 2.09 LS
Hidden charges with no back-
2.46 LS 2.08 LS 2.00 LS 2.27 LS 2.36 LS 2.14 LS
up documentation
Charging for roadside
2.43 LS 2.08 LS 2.00 LS 2.18 LS 2.09 LS 2.12 LS
assistance
Unreturned lost items 2.57 SS 2.20 LS 2.13 LS 2.25 LS 2.27 LS 2.23 LS
Grand Weighted Average 2.64 SS 2.21 LS 2.06 LS 2.18 LS 2.30 LS 2.21 LS
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 131

7.2. Based on Gender

Table 56
Problems Encountered by the Car Rental Customers/Clients
Based on Gender
Gender
Overall
Male Female
PROBLEMS
WM VI WM VI WM VI
Vehicle Breakdown 2.41 LS 2.61 SS 2.48 LS
Scarcity of cars during peak season 2.42 LS 2.68 SS 2.51 SS
No replacement of vehicles in case of breakdown 2.17 LS 2.49 LS 2.29 LS
Poor customer service 2.12 LS 2.37 LS 2.21 LS
Car theft (car napping and carjacking) 2.03 LS 2.25 LS 2.11 LS
Charging extra cost for extra mileage and extended
2.22 LS 2.51 SS 2.32 LS
hours
Additional fee for the driver 2.07 LS 2.25 LS 2.13 LS
Disrespectful drivers 1.95 LS 2.27 LS 2.07 LS
Overcharging fuel consumption 2.04 LS 2.30 LS 2.14 LS
Charging for dents/scratches 2.10 LS 2.22 S 2.14 LS
Misinformation on company policies 1.97 LS 2.21 LS 2.06 LS
Charging pick-up and delivery service 2.10 LS 2.40 LS 2.21 LS
No insurance coverage 2.09 LS 2.46 LS 2.23 LS
False rate advertisement 1.98 LS 2.27 LS 2.09 LS
Hidden charges with no back-up documentation 1.97 LS 2.44 LS 2.14 LS
Charging for roadside assistance 2.02 LS 2.29 LS 2.12 LS
Unreturned lost items 2.14 LS 2.39 LS 2.23 LS
Grand Weighted Average 2.11 LS 2.38 LS 2.21 LS

Table 56 presents the distribution of responses terms of gender. Almost all of

the responses were an overall interpretation of less serious except for one. First on

the list is the item scarcity of cars during peak seasons which obtained an overall

WM of 2.51 and is interpreted as somewhat serious. The rest if the items with a

verbal interpretation of less serious include vehicle breakdown with 2.48 WM,

followed by charging extra cost for extra mileage and extended hours with 3.32

WM. Next is no replacement of vehicles in terms of breakdown which obtained a

WM of 2.29. Fifth is that there is no insurance coverage which garnered a WM of

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 132

2.23. Poor customer service was next with 2.21 WM. Tied with a WM of 2.14 are

the items overcharging fuel consumption and charging for dents and scratches,

while additional fee for the driver obtained 2.13 WM. Charging for roadside

assistance followed with 2.12 WM. Car theft is the tenth on the rank with 2.11 WM.

False rate advertisement followed with 2.09 WM, while disrespectful drivers

obtained 2.07 WM. Misinformation on company policies on the other hand was last,

received a 2.06 WM.

The grand weighted mean average classified in terms of gender were 2.38 for

female and 2.11 for male giving it an overall WM of 2.21 and an interpretation of

less serious.

Regardless of the respondents’ gender, car rental companies have no

preference when it comes to renting during peak season. Rates of rentals in a

highly seasonal nature are fixed and cannot be reduced or decreased rental

demand.

7.3. Based on Occupation

Table 57 reveals the distribution of responses in terms of problems

encountered which were classified based on occupations. Scarcity of cars during

peaks season is on top of the list with 2.51 WM and is interpreted as somewhat

serious. Next is vehicle breakdown with 2.48 WM. Third is charging extra cost for

extra mileage and extended hours. It was followed by no replacement of vehicles

in case of breakdown with 2.29 WM. No insurance coverage and unreturned lost

items both got a 2.23 WM, while charging pick-up and delivery service obtained
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 133

and poor customer service followed with 2.21 WM. Then with WM of 2.14 are the

items charging for dents and scratches, overcharging for fuel consumption, and

hidden charges with no back-up documentation were next, all with 2.14 WM.

Additional fee for the driver followed with 2.13 WM. Charging for roadside

assistance obtained a WM of 2.12. Car theft, on the other hand received a 2.11

WM and false advertisement followed with 2.09 WM. Next to them are

disrespectful drivers with 2.07 WM and misinformation on company policies with

2.06 WM.

The GWA of the responses in terms of occupation include government

officials with 2.62 GWA and a verbal interpretation of somewhat serious. Followed

by responses from entrepreneurs with GWA of 2.37 and an interpretation of less

serious. Third are the unemployed respondents with a GWA of 2.30 which is

interpreted as less serious. Next are the responses from private and public firm

employees with a GWA of 2.12. 2.5 GWA came from the responses of the

students. Last came from the OFWs with 1.9 GWA and is interpreted as less

serious.

The items with verbal interpretation of somewhat satisfied started with airport

rental locations is next with 3.37 WM, while tie-up with hotels and travel agencies

obtained 3.36 WM. The last two items are branches in different locations and

discount options, both with 3.21 and 2.94 WM respectively.

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 134

Table 57
Problems Encountered by the Car Rental Customers/Clients
Based on Occupation
Occupation
Employee Overall
Government Entrepreneur/b
PROBLEMS (public/ Student Unemployed OFW
official usinessman
private)
WM VI WM VI WM VI WM VI WM VI WM VI WM VI
Vehicle
2.63 SS 2.35 LS 2.54 SS 2.89 SS 2.71 SS 2.39 LS 2.48 LS
Breakdown
Scarcity of
cars during 2.78 SS 2.58 SS 2.55 SS 3.05 SS 2.45 LS 2.16 LS 2.51 SS
peak season
No
replacement of
vehicles in 2.67 SS 2.21 LS 2.38 LS 2.72 SS 2.37 LS 2.04 LS 2.29 LS
case of
breakdown
Poor customer
2.48 LS 2.07 LS 2.46 LS 2.53 SS 2.53 SS 1.97 LS 2.21 LS
service
Car theft
(carnapping
2.63 SS 1.91 LS 2.33 LS 2.44 LS 2.06 LS 2.04 LS 2.11 LS
and
carjacking)
Charging extra
cost for extra
mileage and 2.59 SS 2.23 LS 2.47 LS 2.95 SS 2.35 LS 2.10 LS 2.32 LS
extended
hours
Additional fee
2.41 LS 2.06 LS 2.44 LS 2.84 SS 2.10 LS 1.80 LS 2.13 LS
for the driver
Disrespectful
2.30 LS 2.03 LS 2.31 LS 2.37 LS 2.10 LS 1.81 LS 2.07 LS
drivers
Overcharging
fuel 2.73 SS 2.06 LS 2.31 LS 2.63 SS 2.29 LS 1.72 LS 2.14 LS
consumption
Charging for
dents/scratche 2.63 SS 2.12 LS 2.28 LS 2.21 LS 2.26 LS 1.84 LS 2.14 LS
s
Misinformation
on company 2.48 LS 2.01 LS 2.28 LS 2.06 LS 2.14 LS 1.83 LS 2.06 LS
policies
Charging pick-
up and
2.46 LS 2.04 LS 2.31 LS 2.53 SS 2.55 SS 2.10 LS 2.21 LS
delivery
service
No insurance
3.00 SS 2.09 LS 2.46 LS 2.56 SS 2.37 LS 1.87 LS 2.23 LS
coverage
False rate
2.72 SS 1.94 LS 2.31 LS 2.53 SS 2.20 LS 1.80 LS 2.09 LS
advertisement
Hidden
charges with
2.77 SS 2.05 LS 2.36 LS 2.47 LS 2.29 LS 1.78 LS 2.14 LS
no back-up
documentation
Charging for
roadside 2.69 SS 2.05 LS 2.18 LS 2.37 LS 2.10 LS 1.90 LS 2.12 LS
assistance
Unreturned
2.58 SS 2.11 LS 2.26 LS 2.42 LS 2.23 LS 2.25 LS 2.23 LS
lost items
Grand
Weighted 2.62 SS 2.12 LS 2.37 LS 2.58 SS 2.30 LS 1.96 LS 2.21 LS
Average
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 135

The grand weighted average for the responses from the weekly, monthly and

yearly rentals with 3.76, 3.72, and 3.70 WM respectively; bringing down the overall

GWA to 3.71 with a verbal interpretation of satisfied.

Table 57 data show that regardless of occupation, car renters may

experience problem such as scarcity of finding a car for rent especially during peak

season. Other problems may appear less serious but having technical trouble can

cause a serious problem especially when the vehicle breakdown happens to be in

an isolated places.

7.4. Based on Frequency of Rental

Table 58 shows the distribution of responses in term of frequency of rental.

First on the list is the scarcity of cars during peak season with 2.51 WM and an

interpretation of somewhat serious. The rest of the items were given interpretation

of less serious beginning with vehicle breakdown with 2.48 WM. Following it is no

replacement of vehicles in case of breakdown. Charging extra cost for extra

mileage and extended hours is next with 2.32 WM. Unreturned lost item obtained

2.24 WM while no insurance coverage got a 2.22 WM. Tied with a WM of 2.21 are

the responses for poor customer service and charging pick-up and delivery

service. Charging for dents and scratches followed with 2.14 WM. Additional fee

for the driver is next with 2.13 WM. Charging for roadside assistance and car theft

both obtained 2.11 WM. False advertisement followed with 2.08 WM, while

additional fee for the driver and misinformation on company policies both obtained

2.06 WM.
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 136

The GWA for all the responses include 2.84 for weekly rentals with an

interpretation of somewhat serious. 2.30 GWA for monthly rentals which is

interpreted as less serious and 2.10 GWA for yearly rentals interpreted as less

serious. The overall GWA is 2.21 and is interpreted as less serious.

Table 58
Problems Encountered by the Car Rental Customers/Clients
Based on Frequency of Rental

Frequency of Rental
Overall
Weekly Monthly Yearly
PROBLEMS
WM VI WM VI WM VI WM VI

Vehicle Breakdown 2.95 SS 2.51 SS 2.43 LS 2.48 LS

Scarcity of cars during peak season 2.79 SS 2.60 SS 2.45 LS 2.51 SS
No replacement of vehicles in case of
2.63 SS 2.40 LS 2.19 LS 2.28 LS
breakdown
Poor customer service 3.06 SS 2.23 LS 2.12 LS 2.21 LS
Car theft (carnapping and carjacking) 2.74 SS 2.25 LS 1.99 LS 2.11 LS
Charging extra cost for extra mileage and
2.89 SS 2.38 LS 2.24 LS 2.32 LS
extended hours
Additional fee for the driver 2.58 SS 2.23 LS 2.05 LS 2.13 LS
Disrespectful drivers 2.53 SS 2.12 LS 1.99 LS 2.06 LS
Overcharging fuel consumption 2.89 SS 2.23 LS 2.01 LS 2.13 LS
Charging for dents/scratches 2.95 SS 2.22 LS 2.02 LS 2.14 LS
Misinformation on company policies 3.11 SS 2.19 LS 1.90 LS 2.06 LS
Charging pick-up and delivery service 2.95 SS 2.20 LS 2.15 LS 2.21 LS
No insurance coverage 2.89 SS 2.38 LS 2.09 LS 2.22 LS
False rate advertisement 2.95 SS 2.29 LS 1.91 LS 2.08 LS
Hidden charges with no back-up
2.95 SS 2.25 LS 2.02 LS 2.14 LS
documentation
Charging for roadside assistance 2.89 SS 2.23 LS 1.99 LS 2.11 LS
Unreturned lost items 2.47 LS 2.40 LS 2.14 LS 2.24 LS
Grand Weighted Average 2.84 SS 2.30 LS 2.10 LS 2.21 LS
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 137

7.5. Based on Transmission Preference

Table 59
Problems Encountered by the Car Rental Customers/Clients
Based on Transmission Preference

Transmission preference
Overall
Manual Automatic
PROBLEMS
WM VI WM VI WM VI
Vehicle Breakdown 2.25 LS 2.72 SS 2.48 LS
Scarcity of cars during peak season 2.36 LS 2.67 SS 2.51 SS
No replacement of vehicles in case of
1.99 LS 2.60 SS 2.28 LS
breakdown
Poor customer service 2.06 LS 2.37 LS 2.21 LS
Car theft (carnapping and carjacking) 1.85 LS 2.40 LS 2.12 LS
Charging extra cost for extra mileage and
2.13 LS 2.53 SS 2.32 LS
extended hours
Additional fee for the driver 2.04 LS 2.23 LS 2.13 LS
Disrespectful drivers 1.82 LS 2.32 LS 2.06 LS
Overcharging fuel consumption 2.01 LS 2.28 LS 2.14 LS
Charging for dents/scratches 1.91 LS 2.39 LS 2.14 LS
Misinformation on company policies 1.80 LS 2.33 LS 2.06 LS
Charging pick-up and delivery service 2.08 LS 2.36 LS 2.22 LS
No insurance coverage 2.00 LS 2.46 LS 2.22 LS
False rate advertisement 1.84 LS 2.35 LS 2.09 LS
Hidden charges with no back-up
1.93 LS 2.37 LS 2.14 LS
documentation
Charging for roadside assistance 1.85 LS 2.38 LS 2.10 LS
Unreturned lost items 1.98 LS 2.49 LS 2.22 LS
Grand Weighted Average 2.00 LS 2.43 LS 2.21 LS

Table 59 presents the problems encountered as classified according to

transmission preference. On top of the responses is the scarcity of cars during

peak season with 2.36 WM and a verbal interpretation of less serious for those

who prefer manual and 2.67 for automatic with an interpretation of somewhat

serious, obtaining an overall WM of 2.51 which is interpreted as somewhat serious.

It was followed by vehicle breakdown with 2.25 WM for manual, 2.72 for automatic
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 138

and 2.48 overall WM which were all interpreted as less serious. Charging extra

cost for extra mileage and extended hours is third with 2.13 and 2.53 WM for

manual and transmission respectively, and a total of 3.23 which is interpreted as

less serious.

The lowest WMs on the other hand include, car theft with 1.85 WM for

manual, 2.40 WM for automatic and 2.40 for automatic which totaled to 2.12, and

is interpreted as less serious. Following it are the entries on disrespectful drivers,

misinformation on company policies, and charging for roadside assistance which

obtained a total WM of 2.10 which is still considered less serious.

This means that regardless of car transmission, a problem in scarcity of cars

during peak season cannot be avoided. There are clients who prefer to use

automatic transmission but according to the survey, clients prefer to hire cars with

driver and that would support the table above.

7.6. Based on Service Preference

Table 60 presents the distribution of responses for problems encountered

classified in based on service preference. Scarcity of cars during peak season is

still the top scorer with 2.79 WM for self-driven service and 2.35 WM for service

with driver, having an overall WM of 2.52 and is interpreted as somewhat serious.

Vehicle breakdown came in next with 2.54 WM for self-driven and 2.45 for with-

driver service and an overall WM of 2.49, with a verbal interpretation of less

serious.
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 139

The other set of scores were also interpreted as less serious. Car theft and

charging for roadside assistance tied with an overall WM of 2.12. False rate

advertisement followed with 2.23 WM for self-driven vehicles, 1.93 for service with

driver, obtaining a total of 2.09. Tied in the last place are misinformation on

company policies and disrespectful drivers with 2.07 WM.

The GWAs for the responses were 2.39 for self-driven vehicles, 2.10 WM for

service with driver and 2.21 for overall GWA, all interpreted as less serious.

The table shows that regardless of transmission preference, problems can be

less serious when the vehicles are of quality and the services of the car rental

business are of transparency, quickness and totally customer satisfaction.

Table 60
Problems Encountered by the Car Rental Customers/Clients
Based on Service Preference
Service preference
Overall
Self-driven With driver
PROBLEMS
WM VI WM VI WM VI
Vehicle Breakdown 2.54 SS 2.45 LS 2.49 LS
Scarcity of cars during peak season 2.79 SS 2.35 LS 2.52 SS
No replacement of vehicles in case of breakdown 2.43 LS 2.20 LS 2.29 LS
Poor customer service 2.35 SS 2.14 LS 2.22 LS
Car theft (carnapping and carjacking) 2.40 SS 1.95 LS 2.12 LS
Charging extra cost for extra mileage and
2.55 LS 2.19 LS 2.33 LS
extended hours
Additional fee for the driver 2.26 LS 2.07 LS 2.14 LS
Disrespectful drivers 2.20 LS 1.99 LS 2.07 LS
Overcharging fuel consumption 2.33 LS 2.02 LS 2.14 LS
Charging for dents/scratches 2.37 LS 2.01 LS 2.15 LS
Misinformation on company policies 2.27 LS 1.95 LS 2.07 LS
Charging pick-up and delivery service 2.36 LS 2.13 LS 2.22 LS
No insurance coverage 2.45 LS 2.09 LS 2.23 LS
False rate advertisement 2.35 LS 1.93 LS 2.09 LS
Hidden charges with no back-up documentation 2.38 LS 2.01 LS 2.15 LS
Charging for roadside assistance 2.32 LS 2.00 LS 2.12 LS
Unreturned lost items 2.29 LS 2.20 LS 2.23 LS
Grand Weighted Average 2.39 LS 2.10 LS 2.21 LS
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 140

Chapter 5

SUMMARY, FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS

This chapter summarizes the findings and results of the study, formulates

conclusions and presents recommendations.

Summary

This study ascertained the level of effectiveness of the marketing strategies

and the customer’s level of satisfaction on the services provided by the car rental

business in the NCR. It also sought to find if there is a significant difference on the

marketing strategies as assessed in terms of product, price, place and promotion,

as well as the level of satisfaction of the customer respondents when grouped

based on their profile.

Using the descriptive research to achieve the goals of the study, the

researcher set out and administered questionnaire containing questions on the

customer respondents’ profile as well as a likert scale to identify the level of

satisfaction they have over the company’s services. A separate questionnaire was

likewise administered to the car rental owners containing information on the

company’s profile and also a likert scale to identify the effectiveness of their

marketing strategies. 300 consumer respondents were drawn through convenience

sampling while 60 car rental companies took part in the data gathering. The data

taken from the respondents where then computed using the percentage, weighted

mean, t-test, ANOVA and post hoc using tukey for multiple comparisons.
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 141

Findings

The following are the findings of the study:

1. The profile of the respondents show that out of 300 respondent car rental

customers, 101 or 33.7% are aged 36-45 while 12 or 4.0% belong to above 56 age

range. In terms of gender, 63.3% of the respondents are male while 36.7% are

female. In terms of occupation, 113 or 37.7% of customers are employees from

public and private firms while 19 or 6.3% are students. For the purpose of trip, 100

customers hired vehicles for personal use while 5 would rent to use for weddings.

In terms of the frequency of rentals, the highest which is 196 or 65.3% rent

vehicles on a yearly basis while the lowest is 19 or 6.3% on a weekly basis.

Respondents who responded 4 or 1.3% have no definite time in renting a vehicle.

In terms of vehicle preference, 122 clients answered that they prefer to rent AUVs

like Innova, Revo, Adventure, etc. and lowest is 53 that would prefer renting SUVs

like Crosswind, Fortuner, Montero, etc. In terms of transmission preference, of the

total 300 respondents, 152 or 50.7% prefer manual transmission while 5 or 1.7% of

the respondents don’t have transmission preference. In terms of service

preference, 184 or 61.3% prefer to rent a car with driver and only 1 or 0.3% has no

service preference. For the profile of respondent car rental companies shows that

out of 60 respondents, 30 or 50% engaged in single proprietorship while 4 or 6.7%

engaged in Partnership form of organization. In terms on the number of years of

operation, 15 or 25% have been operating the business for 6-10 years and 6 or

10% have been operating for 26 years and above while 2 or 3.3% has no
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 142

response. In terms on the classification of vehicles for rent, 50 respondents

answered AUVs while 34 have answered SUVs. These are multiple responses

since car rental companies have variety of vehicles for difference occasions or

usage. In terms of the number of units of vehicles for rent, 29 or 48.3% have 30

cars and above while 2 or 3.3% have 14-17 vehicles for rent.

2. In terms of respondent customers/clients’ assessment on the level of

satisfaction based on age, gender, occupation, frequency of rentals, transmission

preference and service preference, reliable and well-maintained vehicles has the

highest WM while discount coupon has the least.

3. There is no significant difference in the level of satisfaction of the

customers/clients on the services of the car rental companies as to age, gender,

occupation, frequency of rental, transmission preference and service preference.

4. In terms of respondent car rental companies’ effectiveness of the marketing

strategies as to forms of business organization based on product, reliable and well-

maintained vehicles have the highest WM with 4.48 (Very Effective). In terms of

price, discounted rates for long-term rentals obtained the highest WM of 4.58 (Very

Effective). In terms of place, airport rental locations obtained the highest WM of

3.93 (Effective) and based on promotion, web advertising got the highest WM of

4.92 (Very Effective). As to the number of years operation based on Product,

reliable and well maintained vehicles for every occasion had the highest WM of

4.84 (Very Effective). In terms of price, discounted rates for long-term rentals

obtained the highest WM of 4.56 (Very Effective). In terms of place, airport rental
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 143

locations had the highest WM of 3.91 (Effective) and in terms of promotion, web

advertising got the highest with 4.91 WM (Very Effective). As to the number of

units of vehicles for rent based on product, reliable and well-maintained vehicles

have the highest WM with 4.83 (Very Effective). In term of price, discounted rates

for long-term rentals obtained the highest WM of 4.58 (Very Effective). In terms of

place, airport rental locations obtained the highest WM of 3.93 (Effective) and in

terms of promotion, web advertising got the highest with 3.65 WM (Very Effective).

5. There is no significant difference in the level of effectiveness of the marketing

strategies of the car rental companies as to the forms of business organization,

number of years of operation, classification of the vehicles for rent and the number

of units of vehicles for rent in terms of Product, Price, Place and Promotion.

6. In term of the problems encountered by the car rental companies based on the

forms of organization, number of years of operation and number of units of vehicles

for rent, intense industry competition is revealed to be the highest WM of 3.56, 3.61

and 3.56 respectively which interpreted to be Serious. Meanwhile, extended rental

due dates got the lowest WM of 1.83, 1.84 and 1.83 respectively which interpreted

to be Less Serious.

7. In terms of the problems encountered by the customers/clients on the services

of the car rental business as classified by age, gender, occupation, frequency of

rentals, transmission preference and service preference, scarcity of cars during

peak season is revealed to be the highest WM of 2.51, 2.51, 2.51, 2.51, 2.51 and

2.52 respectively which interpreted as Somewhat Serious. Meanwhile,

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 144

misinformation on company policies has the lowest WM of 2.06, 2.06, 2.06, 2.06,

2.06 and 2.07 respectively which interpreted as Less Serious.

Conclusions

Based on the findings the following conclusions were drawn:

1. Majority of the respondents from the car rental companies are single

proprietors and have been operating the business for 6-10 years, have mostly

AUVs for rent, and have around 30 vehicles and above for hire. On the other hand,

the customer respondents are mostly 36-45 years old, males, employees of private

or public firms, would rent cars for vacation/leisure purpose, would rent on a yearly

basis, prefer to hire AUV with manual transmission and with driver for the service

preference.

2. All the aspects used in identifying the level of satisfaction such as age,

gender, occupation, frequency of rental, transmission preference, and service

preference are satisfied with the services provided by the car rental companies

particularly reliable and well-maintained vehicle. and the problems met by these

customer respondents were found to be less serious.

3. The level of effectiveness of marketing strategies based on the product,

price, place and promotion aspects were as follows:

The forms of business have all found their marketing strategies to be

effective in terms of product, price, place and promotion. The problems they

encountered were considered less serious.

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 145

For years of operation, all companies regardless of the years they have

been operating have found their marketing strategies to be effective.

As for the units of vehicles for rent, all of the companies have found their

marketing strategies to be effective regardless of whether they are maintaining

many or few vehicles. On the other hand, the problems they met were found to be

somewhat serious.

4. When grouped according to forms of business organization, number of

years of operation, classification of vehicles for rent and number of units of

vehicles for rent, it was found out that there is no significant difference on the level

of effectiveness of the marketing strategies.

5. When grouped according to age, gender, occupation, and transmission

preference, frequency of rental and service preference, it was found that there is

no significant difference between the level of satisfaction of the customers and the

car rental company’s services. They also found their problems to be less serious.

6. The main problems encountered by the companies are intense industry

competition, economic downturn, and the fluctuation in fuel costs and supplies.

7. The main problems encountered by the car rental customers/clients are

primarily the scarcity of vehicles during peak season, followed by vehicle

breakdown and charging extra cost for mileage and extended hours.
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 146

Recommendations
In terms of Level of Satisfaction of the customers/clients
1. Car rental customers aged 36-45 years old, female and working in a

government agency or a government officials have always been enthusiastic about

discount coupons offered by car rental companies, which helped them incur

substantial savings on their budget.

In today's competitive market, each and every company is absolutely serious

about getting that extra mileage over its competitors by attracting more and more

customers. Startup companies, desiring to create a substantial impact are also

prone to offer exotic promotional offers. Whatever be the reason, it is the

customers, who are always at the gainers end.

2. The majority of car rental companies’ revenue is generated in putting up

branches in different locations and in airport rental locations. Customers who are

36-45 years old and mostly females are looking for convenience in finding

vehicles for rent wherever they are or whenever they arrive at the airport.

3. To meet customer satisfaction, car rental companies can partner with

online travel agencies and expand its database when partnering with these

companies. When partnering with airlines, car rental company should consider

offering cross-selling package products like business class flight tickets with VIP

express lane immigration service. In this way car rental companies can leverage

on partnership database and co-creating cross-selling package products.

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 147

Sometimes, travel agencies have special agreements with hotels and the

price become cheaper. Comfort in customers’ destinations can be provided and

vacations will be organized with ease and convenience.

4. A car rental company should work with car manufacturers to increase

rental inventory of cars to allow the latest and innovative features in electronics,

low gas consumption, mobile communications and navigation particularly GPS,

TV monitor and DVD system. These features can provide customers’ satisfaction

by minimizing boredom while travelling through entertainment. GPS can help

customers even those with drivers in identifying better locations for leisure and

other tourist destinations.

In terms of Problems encountered by the Car Rental customers/clients

1. Product

1.1. Car rental owners may consider building a network of car rental

companies to anticipate the influx of customers especially during peak

season. Although the competition is deemed to be tough in this kind of

business, forming linkages can also be a good way of ensuring that there will

be enough vehicles for dispatch particularly on tight seasons.

1.2. Car rental companies should provide assistance in case of vehicle

breakdown. There must be 24/7 roadside assistance, lock out assistance,

minor roadside adjustments, towing, tire change service, extrication, gasoline

delivery and dead battery services. A roadside assistance should offer toll-
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 148

free phone support to answer any questions, it provides peace of mind for

customers in knowing help is only a phone call away, no matter the situation

that may occur on the road.

2. Price

2.1. Charging extra mileage and extended hours for customers can create

some problems. To avoid this problem, car rental companies must be

transparent with their fees. Unlimited mileage can be of help for customers

who do not want to pay for the excess but hidden fees must be prevented.

Providing the clients a higher mileage limit or a lower excess mileage charge

in the lease contract can also be a better service.

On the part of customers/clients, reading the rental agreement and

awareness for the mileage charge will be of help. Determine the total number

of miles drive during the trip. Add extra miles to cover any emergencies or

problems that may incur, such as getting lost or looking for gas stations.

2.2. Car hire companies must include some form of car hire insurance in

their basic rental price. This may be what’s called ‘Third-Party’ and will cover

for any damage caused to third parties when driving the rented vehicle. This

is often the legal minimum insurance required in most countries and some

rental companies will also include in insurance cover against theft risks to the

rented vehicle itself.

POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 149

3. Place

3.1. Airport locations are a “must have” for car rental companies. The great

majority of customers are business and leisure travellers. They want and

need access to rental cars from the airport. Having a rental station inside of

the airport terminals is highly advantageous. Otherwise, rental facilities that

are outside of the airport terminals should provide a free shuttle service for

customers.

4. Promotion

4.1. For the car rental companies to continue capitalizing on the use of the

World Wide Web as a means of promoting their products and services. Since

social networking provides free product and service advertisement, car rental

owners should focus on maintaining their fan pages to continue garnering

customers.

4.2. Advertisement, whether on the net, tv or in the newspaper, the

company must build up a brand equity to differentiate from other competitor.

The brand equity build up will focus on lifestyle such as advertisement

showing families traveling to luxurious tourism destination and using a rental

car for driving around.

 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 150

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 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 154

Appendix 1

Request Letter to the DOTC for the List of Accredited Tourist Transport
Operators in NCR
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 155

Appendix 2

Response Letter of the Department of Transportation and Communication

(DOTC)
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 156

Appendix 3

Questionnaire
(Car Rental Business Owner/Operator/Manager)

Dear Respondent,

I am Aides M. Rivamonte, a Doctor in Business Administration (DBA) student from Polytechnic

University of the Philippines. Currently, I am studying the effectiveness of the marketing strategies
and clients’ level of satisfaction on the services of the car rental business in the National Capital
Region as part of the requirements of the course. May I request for your participation in the study
by filling up this questionnaire. Rest assured that any information provided will be dealt with utmost
confidentiality.

Thank you.
The Researcher

PART I. COMPANY PROFILE

Instruction: Kindly put a check mark ( / ) on the answer most applicable to you. Please answer them
completely and honestly as possible.

1.1. Form of business organization

_______ Single proprietorship

_______ Partnership
_______ Corporation

1.2. Number of years of operation

_______ 1 – 5 years _______ 16 – 20 years

_______ 6 – 10 years _______ 21 – 25 years
_______ 11 – 15 years _______ 26 years and above

1.3. Classification of the vehicles for rent

_______ Sedan _______ VAN

_______ AUV _______ Bus
_______ SUV

1.4. Number of units of vehicles for rent

_______ 2 – 5 _______ 18 – 21
_______ 6 – 9 _______ 22 – 25
_______ 10 – 13 _______ 26 – 29
_______ 14 – 17 _______ 30 cars and above
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 157

PART II. LEVEL OF EFFECTIVENESS ON THE MARKETING STRATEGIES OF CAR RENTAL

BUSINESS

Instructions: Please assess the level of effectiveness of the marketing strategies of your car rental
business by using the following scale.

5– 96 – 100% - Very effective (VE)

4– 86 – 95% - Effective (E)
3– 76 – 85% - Somewhat effective (SE)
2– 66 – 75% - Less effective (LE)
1– 65% and below - Ineffective (IE)

VE E SE LE IE
MARKETING STRATEGIES 5 4 3 2 1
2.1 PRODUCT
2.1.1 Variety of vehicles for every occasion
2.1.2 Reliable and well-maintained vehicles
2.1.3 Added features like GPS, TV monitor,
and DVD system
2.1.4 Storage spaces
2.1.5 Emergency assistance
2.1.6 Quick reservation
2.1.7 Reliable billing system
2.1.8 Courteous drivers
2.1.9 Free pick-up and return service
2.2 PRICE
2.2.1 Discounted rates for long-term rentals
(i.e. weekly, monthly, yearly)
2.2.2 Volume discount (i.e. number of rental
transactions)
2.2.3 Refund of deposits
2.2.4 Lower rates for older vehicles
2.2.5 Credit line or payment flexibility
2.3 PLACE
2.3.1 Tourist district
2.3.2 Airport rental locations
2.3.3 Tie-up with hotel and travel agencies
2.3.4 Branches in different locations
2.4 PROMOTION
2.4.1 Newspaper
2.4.2 Discount coupons
2.4.3 Telemarketing
2.4.4 Public relations
2.4.5 Referrals
2.4.6 Trade shows
2.4.7 Word of mouth
2.4.8.Web Advertising
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 158

PART III. PROBLEMS ENCOUNTERED BY CAR RENTAL COMPANY

Instructions: Please assess the following problems you have encountered in your car rental business
in terms of their degree of seriousness. Use the following scale for your answer.

5– 96 – 100% - Very serious (VS)

4– 86 – 95% - Serious (S)
3– 76 – 85% - Somewhat serious (SS)
2– 66 – 75% - Less serious (LS)
1– 65% and below - Not a problem (NP)

VS S SS LS NP
PROBLEM(S) 5 4 3 2 1
3.1. Fake passport, invalid identification cards
and other documents
3.2. Credit card fraud
3.3. Client’s inability to pay
3.3. Intense industry competition
3.4. Scarcity of demand
3.5. No GPS navigation
3.6. Extended rental due dates
3.7. Irresponsible and dishonest drivers
3.8. Stolen vehicles
3.9. Fluctuations in fuel costs or supplies
3.10. Economic downturn
3.11. Road mishaps and accidents
3.12. Public liability and property damage
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 159

Appendix 4

Questionnaire
(Car Rental Customers/clients)

Dear Respondent,

I am Aides M. Rivamonte, a Doctor in Business Administration (DBA) student from Polytechnic

University of the Philippines. Currently, I am studying the effectiveness of the marketing strategies
and clients’ level of satisfaction on the services of the car rental business in the National Capital
Region as part of the requirements of the course. May I request for your participation in the study
by filling up this questionnaire. Rest assured that any information provided will be dealt with utmost
confidentiality.

Thank you.
The Researcher

PART I. PROFILE OF THE RESPONDENT

Instruction: Kindly put a check mark ( / ) on the answer most applicable to you. Please answer them
completely and honestly as possible.

1.1. Age

_____ 18 to 25 years old _____ 46 to 55 years old

_____ 26 to 35 years old _____ above 56 years old
_____ 36 to 45 years old

1.2. Gender

_____ Male _____ Female

1.3. Occupation

_____ Government Official _____ Student

_____ Employee (public/private) _____ Unemployed
_____ Entrepreneur/ businessman _____ OFW

1.4. Purpose of trip

_____ Vacation/ leisure _____ Wedding service

_____ Seminar/ conference _____ Airport transfer
_____ Business trip _____ Personal use

1.5. Frequency of Rental

_____ Weekly / number of days (min____:max.____)

_____ Monthly / number of days (min.____:max.____)
_____ Yearly / number of days (min.____:max._____)
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 160

1.6. Vehicle preference

_____ sedan (i.e. vios, altis, civic, sentra, etc.)

_____ AUV (i.e. innova, revo, adventure, etc.)
_____ SUV (i.e. crosswind, fortuner, montero, etc.)
_____ Van (i.e. urvan, hi-ace, starex, etc.)

1.7. Transmission preference

_____ Manual _____ Automatic

1.8. Service preference

_____ Self-driven _____ With driver

PART II. LEVEL OF SATISFACTION ON THE SERVICE(S) OF THE CAR RENTAL BUSINESS

Instructions: Kindly assess your level of satisfaction on the services provided by the car rental
business by using the following scale.

5– 96 – 100% - Very satisfied (VS)

4– 86 – 95% - Satisfied (S)
3– 76 – 85% - Somewhat satisfied (SS)
2– 66 – 75% - Less satisfied (LS)
1– 65% and below - Not satisfied (NS)

PART III. PROBLEMS ENCOUNTERED ON THE SERVICES OF CAR RENTAL COMPANIE

VS S SS LS NS
SERVICES PROVIDED 5 4 3 2 1
2.1 Variety of vehicles for every occasion
2.2 Reliable and well-maintained vehicles
2.3 Added features like GPS, TV monitor,
and DVD system
2.4 Ease of assistance if problem arises
while on rent
2.5 Quick reservation
2.6 Reliable billing system
2.7 Courteous drivers
2.8 Free pick-up and return service
2.9 Discounted rates for long-term rentals
(i.e. weekly, monthly, yearly)
2.10 Volume discount (i.e. number of rental
transactions)
2.11 Convenience in refunding deposits
2.12 Lower rates for older vehicles
2.13 Credit line or payment flexibility
2.14 Easy to locate the company or office
2.15 Reliable Office/Booking Staff
2.16 Airport rental locations
2.17 Tie-up with hotel and travel agencies
2.18 Branches in different locations
2.19 Discount coupons
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 161

Instructions: Please check the problems you have encountered on the services of the car rental
company where you rented your vehicle(s) by using the following scale.

5– 96 – 100% - Very serious (VS)

4– 86 – 95% - Serious (S)
3– 76 – 85% - Somewhat serious (SS)
2– 66 – 75% - Less serious (LS)
1– 65% and below - Not a problem (NP)

VS S SS LS NP
PROBLEM(S) 5 4 3 2 1
3.1. Vehicle breakdown
3.2. Scarcity of cars during peak season
3.3. No replacement of vehicles in case of
breakdown
3.4. Poor customer service
3.5. Car theft (carnapping and carjacking)
3.6. Charging extra cost for extra mileage
and extended hours
3.7. Additional fee for the driver
3.8. Disrespectful drivers
3.9. Overcharging fuel consumption
3.10. Charging for dents/scratches
3.11. Misinformation on company policies
3.12. Charging pick-up and delivery service
3.13. No insurance coverage
4. 3.14. False rate advertisement
5. 3.15 Hidden charges with no back-up
documentation
6. 3.16 Charging for roadside assistance
7. 3.17 Unreturned lost items
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 162

Appendix 5

List of Accredited Tourist Transport Operators in NCR

COMPANY NAME
ACTIVEWHEEL TRANSPORT SERVICES, INC
3 KINGS RENT-A-CAR
A JU GLOBAL TRANSPORT
AA TRANSAVIA RENT-A-CAR PHILS.
ABC CAR RENTALS AND TOURIST TRANSPORT, INC.
ALAMO TRANSPORT LEASING SERVICES
ARIES RENT-A-CAR
ARLYN RARANG TRANSPORT
ASSAD RENT-A-CAR CORP.
AVALON RENT-A-CAR
AVIS RENT A CAR
BUDGET CAR RENTAL
CARLAND RENT-A-CAR
CLICK AUTO RENTAL
CLICK AUTO RENTAL AND LEASING
DASEIN TRANSPORT CORPORATION
DATKOM TRAVE, TOURS AND TOURIST TRANSPORT
DIAMOND IGB, INC.
DIRECTION TRAVEL AND TOURS
EDELRAM TOURIST TRANSPORT SERVICE
EL SOL TOURS INC.
EXCLUSIVE CARS INTERNATIONAL
FILCAR TRANSPORT SERVICES
FIRST MASS TRANSPORT SYSTEM, INC.
FOUR BY FOUR CAR RENTAL
FRIENDSHIP TOURS AND RESORT CORP.
G AND S TRANSPORT CORPORATION
GEMINI TRANSPORT SERVICES, INC.
GLOBAL CITY CAR LEASE AND TRANSPORT CORP.
GLOBAL ONE SHUTTLE SERVICE, INC.
GOLDGEAR RENT-A-CAR
GRACE CAR SERVICES
HARANAH TOURIST
HANNAN RENT-A-CAR
HERTZ PHILS. RENT-A-CAR
INTERNATIONAL CAR RENTALS
JB RENT A CAR
JMK SAFE TRANSPORT SERVICES
JO RENT A CAR MANILA
JQQ TRANSPORT, INC.
JS TRAVEL AND TOURS
LRL RENT-A-CAR
LUZON LINK TOURS TRANSPORT
MANILA KEN SHIN TRAVEL AND TOURS, INC.
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 163

MANILA RENT-A-CAR
MARIAN CAR SERVICES
METRO ASIA CAR SERVICES, INC.
MIA TRANSPORT SERVICES, INC.
MIA’S CAR RENTAL
MSIC TRANSPORTATION
NISSAN CAR LEASE PHILS., INC.
ORIX AUTO LEASING PHILS. CORP.
PENINSULA CAR CHARTER SERVICES, INC.
PINTAKASI TRANSPORT
POSITIVE TRAVEL AND TOURS
PRINCE MAYA TRAVEL AND TOURS
ROMA CAR RENTAL
SAFARI RENT-A-CAR
SAINT MICHAEL TRANSPORT
SIESTA RENT-A-CAR
STORK TRAVEL AND TOURS
TAXI COUPON RENT-A-CAR
THRIFTY CAR RENTAL
TNN RENT-A-CAR PHILS.
TOYCO RENT-A-CAR
TRIPLE A CAR RENTAL SERVICES
VIAJERO RENT-A CAR
VIKING RENT-A-CAR
VS YASONA CAR SERVICES
WOW AMAZING TRANSPORT CORP.
ACTIVEWHEEL TRANSPORT SERVICES, INC
3 KINGS RENT-A-CAR
A JU GLOBAL TRANSPORT
AA TRANSAVIA RENT-A-CAR PHILS.
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 164

Appendix 6

Curriculum Vitae

AIDES M. RIVAMONTE

PERSONAL DATA

Address : 26 Kingsrow St. Vermont Royale

Executive Village, Antipolo
City, Rizal
Contact Information : (02) 506-0039 / 0917-5654208
E-mail Address : [email protected]
Date of Birth : October 20, 1976
Place of Birth : Iligan City, Lanao del Norte
Nationality : Filipino
Religion : Catholic
Sex : Female
Marital Status : Married

PROFESSIONAL DATA

Educational Attainment
 Doctor in Business Administration (DBA)
Polytechnic University of the Philippines
April 2013

 Masters in Business Administration (MBA)

Polytechnic University of the Philippines
April 2008

 Bachelor of Science in Commerce major in Business Administration

St. Michael’s College
March 1999

Employment Background

Position Title : Proprietor (2010 to Present)

Company : Goodwill Car Rental
Address : Vermont Royale Executive Village, Antipolo
Job Description
 Responsible for all activities including the rental of customers,
conducting investigation if customers have the capacity to rent,
answering telephone calls and emails, responding to customer’s
questions and queries.
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 165

 Develops a sales objective detailing how many rental contracts and

additional sales within the coming year. A revenue and expense
budget is developed that includes anticipated rentals balanced against
such overhead costs as staff salaries, utilities, repairs and
maintenance.
 Handles car rental inventory, creating the movement of the business
and do benchmarking
 Handles and resolves all customer complaints.

Position Title : Assistant Professor (April 2009 to Present)

Company : Technological Institute of the Philippines
Address : Aurora Boulevard, Cubao, Quezon City
Job description
 Prepares Instructor’s Guide / Weekly Activity Plan (WLAP) on the
assigned course/subject and submits to the Department Chair’s
approval
 Conducts classroom instruction on the subjects indicated in the official
teaching load for the semester in accordance with the School’s
standards and policies
 Maintains effective classroom management through orderliness and
cleanliness in the classrooms and inculcates student discipline
 Evaluates student’s academic performance and submits the Official
Report of Grades/other reports to the Department Chair on scheduled
submission dates

Position Title : Marketing Services Supervisor (2007 to 2009)

Company : Asian College of Science and Technology (ACSAT)
Address : 2/F Hillside Plaza, Sumulong Highway, Antipolo City
Job description
 Responsible for managing, performing, training and coordinating
business development assignments following general guidelines and
instructions for proposals, presentations, advertising, sales promotion,
and information services for the company.
 Must be able to make assignments, follow guidelines and
demonstrate proper procedures
 Provides advice and guidance to others involved in the marketing
projects based upon a variety of needs.
 Sales promotions include client events, trade shows, organization of
special events, brochures, data sheets, videos, or any other special
marketing functions.
 Develops pre-qualification information as well as proposals to support
the sales effort.
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 166

Position Title : Territory Recruitment and Training Supervisor

Company : TRIUMPH INT’L. (PHILS.) INC.
Address : 391 Sen.Gil Puyat Avenue, Makati City
Job description
 Responsible for the attainment of the monthly assigned territory
recruitment goals
 Prepares monthly recruitment budget/ forecast
 Supervises and reviews client’s business in terms of recruitment and
its sales productivity
 Formulates and implements localized plans and programs in terms of
recruitment and its sales productivity
 Responsible for the dissemination of national promotions to different
levels
 Responsible for the implementation and monitoring of dealer’s
Rewards and Recognition
 Conducts trainings of different modules
 Initiates and organizes successful grand and regular recruitment to
ensure network development

Position Title : Sales Account Manager (April 2001 to May 2004)

Company : Orchid Garden Suites - Manila
Address : 620 P. Ocampo Sr. St., Malate Manila
Job description
 Participates in planning and implementing Sales and Marketing
program and activities. Ensures that product knowledge is updated
 Services all the bonafide corporate accounts in their assigned areas
to create demand for the Hotel, whether for room, banquet and other
bookings. Handles all requirements from proposals, contracts,
reservations, payments and even on-site servicing of accounts
 Coordinates with the other Hotel departments to ensure that clients’
requirements and expectations are met
 Prepares and submits a Weekly Report which includes booking
updates and competitors’ activities
 Participates in the established travel and tourism related associations
and organizations to disseminate information about the Hotel industry
updates. Also ensures that a good business relationship is
established with the other industry

Position Title : Front Office Staff (June 1999 to January 2001)

Company : Kanumayan Hotel
Address : 2284 Taft Avenue, Malate Manila
Job description
 Front liners of the organization
 Handles room reservations, guest’s arrival and departure
 Explains to guests the usage of hotel’s facilities and equipments
 Handles and resolves guest’s complaints, even when handling
unpleasant customers
 POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 167

 Interacts with guests to provide information in response to inquiries of

hotel’s products and services
 Develops good customer relation by observing a very pleasant and
friendly atmosphere

PROFESSIONAL DEVELOPMENT

Seminars
 Developing an Entrepreneurial Mindset
TIP-QC Seminar Rm.A&B
Chinkee Tan
March 8, 2013

 What it Takes to be a Global Pinoy

Mang Inasal - SM Centerpoint
DBA 741 Students
September 11, 2010

 GreenPeace Seminar on Global Issues

PUP Graduate School Building
DBA 741 Students
August 28, 2010

 Business Ethics: An Imperative of Moral Leadership

7th floor, Manila Rm. Hasmin Hostel Bldg., PUP
DBA Society
February 16, 2008

 International Forum on: Global Business Development and

Cooperation Among Asian Countries
7th floor, Manila Rm. Hasmin Hostel Bldg., PUP
DBA Society
December 9, 2007

Trainings
 Integrating Values in Classroom Teaching
Human Resource Training Center
TIP- Human Resource Department
July 29, 2009

 Enjoying Teaching in English

Human Resource Training Center
TIP- Human Resource Department
August 10, 2009
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 168

 Exploring Varied Methods for Effective Teaching

Human Resource Training Center
TIP- Human Resource Department
September 24, 2009

 Speech Power English Conversation Fluency 3

Speech Power Bldg., Cubao Quezon City
October 13 – 24, 2008

Extension Program

 DBA SOCIETY AND GRADUATE SCHOOL HANDUGAN

EXTENSION SERVICES PROGRAM – BEAD CRAFT Livelihood
Initiative
Botolan, Zambales
DBA 735 Students and DBA Society
June 5, 2011

Professional Affiliation
 Philippine Marketing Association
Member
2009 to Present

 Royal Institute of Business Administration

Fellow Member
2011 to Present
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES 169
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