BMCB5103/JAN2010-F/FA

PART A INSTRUCTIONS: 1. THERE ARE THREE (3) QUESTIONS IN THIS PART. 2. ANSWER ALL QUESTIONS.

The Dilemma

In buying his first new car, Iqbal visited showrooms and web sites for every make of PROTON. After weeks of reading and test-driving, he settled on a well-known Malaysian-made vehicle (PERSONA 1.6-litre sedan) with a manufacturers suggested price RM44,500 for the 2007 model. The price included accessories and option that Iqbal considered essential. Because he planned to own the car for at least five years, he was willing to wait for just the right package rather than accept a lesser-equipped car already on the lot. Negotiations with Vincent, the sales representative, continued for two weeks. Finally, a sales contract was signed for RM40,600, with delivery due no more than two to three months later if the vehicle had to be special-ordered from the factory and earlier if Vincent found the exact car when he searched other dealers around the country. On May 30, to close the deal, Iqbal had to write a cheque for RM1,000.

Iqbal received a call on July 15 from Maria, Vincents sales manager: We cannot get your car before November, she reported, so it will have to be a 2008 model (NEW SAGA 1.6 litre). You will have to pay the 2008 price. Iqbal replied that the agreement called for a stated price and delivery deadlines for 2007, pointing out that money had exchanged hands for the contract. When asked what the 2008 price would be, Maria responded that it had not yet been announced. Angrily, Iqbal replied that he would be foolish to agree now on some unknown future price. Moreover, he did not like the way the dealership was treating him. He told Maria to send him back everything he had signed; the deal was off.

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Question 1

Given the factors involved in the consumer buying process, how would you characterise the ethical issues in this particular situation? Discuss.

[15 marks]

Question 2

From an ethical standpoint, explain the obligations of (a) the sales representative, and (b) the sales manager, regarding the pricing of the product in this situation. [15 marks]

Question 3

If you were responsible for maintaining good customer relations at the dealership, how would you handle this matter? Explain. [10 marks]

[TOTAL: 40 MARKS]

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PART B INSTRUCTIONS: 1. THERE ARE FIVE (5) QUESTIONS IN THIS PART. 2. ANSWER THREE (3) QUESTIONS ONLY.

Question 1

Identify the key factors that influence the consumer buying process. Describe each of the key factors and provide relevant examples.

[TOTAL: 20 MARKS] Question 2

Identify the ways that a small business can benefit from an understanding of the marketing mix. Give an example. [TOTAL: 20 MARKS] Question 3

a.

Discuss the ELM model persuasion. [10 marks]

b.

As the distributor of Proton automobiles in Malaysia, how would you use ELM to target working women? [10 marks] [TOTAL : 20 MARKS]

Question 4

a.

What do you understand by the term opinion leadership? [10 marks]

b.

How might you use opinion leadership to promote lingerie to women? [10 marks] [TOTAL : 20 MARKS]

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Question 5

a.

Personality distinguishes one person from another. It also determines how and why a consumer behaves in a particular way. How can an understanding of consumer personality and emotion be used in marketing practice? [10 marks]

b.

Explain theory that tries to study the personality in terms of exclusive individual characteristics. Illustrate your answer with a specific example. [10 marks] [TOTAL : 20 MARKS]

QUESTION PAPER ENDS HERE