Mock Exam for MBA Eng 2016

1. Your assistant wants to use secondary data exclusively for the current research
project. How can you advise him that the use of secondary data may have some
potential problems?
(15 Points)
Secondary data refers to data that was collected by someone other than the user. Common
sources of secondary data for social science include censuses, information collected by
government departments, organisational records and data that was originally collected for other
research purposes. Primary data, by contrast, are collected by the investigator conducting the
research.
Secondary data analysis can save time that would otherwise be spent collecting data and,
particularly in the case of quantitative data, can provide larger and higher-quality databases that
would be unfeasible for any individual researcher to collect on their own. In addition, analysts of
social and economic change consider secondary data essential, since it is impossible to conduct a
new survey that can adequately capture past change and/or developments. However, secondary
data analysis can be less useful in marketing research, as data may be outdated or inaccurate.
2. Do you agree with the quote below? Please explain in terms of consumer behavior
or consumer decision process.
The marketers job does not end when the product is bought.
(15 Points)
After purchasing the product, the consumer will be satisfied or dissatisfied and will engage in
post-purchase behavior of interest to the marketer. What determines whether the buyer is
satisfied or dissatisfied with a purchase is lies in the relationship between the consumers
expections and the products previeved performance. If the product falls short of expectation, the
consumer is disappointed; if it meets expectations, the consumer is satisfied; if it exceeds
expectations, the consumer is delighted.
The larger the gap between expectations and performance, the greater the consumers
dissatisfaction. This suggests that sellers should promise only what their brands can deliver so
that buyers are satisfied. Some sellers might ever understand product performance levels to boots
later consumer satisfaction. Customers are delighted with better than expected performance; they
buy again and tell other potential customers that the company lives up to its promises.
3. Company X carries organizational and office supplies and follows the selling
concept. Explain how Company X may lose sight of customer relationships with
their marketing orientation.
Hint: Compare selling concept and marketing concept and provide
appropriate examples.
(15 Points)

When the focus is on selling, the company X thinks that after production has been completed the
task of the sales force starts. It is also the task of the sales department to sell whatever the
production department has manufactured. Aggressive sales methods are justified to meet this
goal and customers actual needs and satisfaction are taken for granted. Selling converts the
product in to cash for the company X in the short run.
Marketing as a concept and approach is much wider than selling and is also dynamic as the focus
is on the customer rather than the product. While selling revolves around the needs and interest
of the manufacturer or marketer, marketing revolves around that of consumer. It is the whole
process of meeting and satisfying the needs of the consumer.
Selling has a product focus and mostly producer driven. It is the action part of marketing only
and has short term goal of achieving market share. The emphasis is on price variation for
closing the sale where the objective can be stated, as I must somehow sell the product. This
short term focus does not consider a prudential planning for building up the brand in the
market place and winning competitive advantage through a high loyal set of customers. The end
means of any sales activity is maximizing profits through sales maximization.
4. Illustrate the concept of positioning map and the relationship between the tool
and marketing mix strategy.
(15 Points)
Positioning map maps are tools used by firms to help understand their image and positioning in
the marketplace relative to competitors. A positioning map is of the visual technique designed to
show how the average target market consumer understands the positioning of the competing
products in the marketplace. In other words, it is a tool that attempts to map the consumers
perceptions and understandings in a diagram.
Product positioning goals must be supported by the full marketing mix. Although positioning
reflects the target markets understanding (perception) of the product, it cannot be achieved
through the IMC/promotional mix only.
All marketing mix elements, particularly the product mix, need to be consistently focused at the
end positioning goal.
An inconsistent marketing mix will simply confuse the marketplace and result in a weak
positioning outcome and/or limited repeat sales.
If the desired positioning has been effectively and clearly chosen, then deciding on the marketing
mix elements should be relatively straight forward (although implementation is always a
challenge).
5. Services are characterized by four key characteristics, intangibility,
perishability, variability, and inseparability. Describe, and provide practical
examples of these four characteristics.
(15 Points)
1) Intangibility. When you buy a car, you can see it, feel it, and even test it prior to purchase. In
other words, products have tangible qualities that provide information to consumers so they can
easily compare one product to another. Services, on the other hand, are intangible. Most services

cannot be experienced or consumed until the purchase is made. Customers can easily end up
feeling like they have to make a purchasing decision without adequate information.
Communication can come from a variety of sources. The use of customer testimonials and referrals
is an excellent way to reduce the level of intangibility for your service. Additionally, you can
increase customers comfort level by explaining your service in as much detail as possible. If you
provide your services at one location (e.g. a doggy daycare) you might consider allowing customer
preview visits. Here is a tip: a well-designed brochure or website can provide information to
customers before they talk to you, improving your overall efficiency and increasing your chances
of securing new business.
2) Inseparability. To continue using the automobile analogy, cars are produced at one location, sold
at another, and used at yet another location. Services are unique because they are usually provided
and consumed at the same time in the same location (e.g. a haircut or car tune-up). Because of the
characteristic of inseparability, customers have strong expectations about how a service will be
provided, which can lead to disappointment if their expectations are not met.
A solid customer service process is the key to managing this challenge effectively. How do you
ensure customer satisfaction? How do you deal with unhappy customers? If you dont know the
level of your customers satisfaction with your service, ask them!
3) Perishability. If a car does not sell today, it can be stored and sold the following day or at some
other time in the future. Services, on the other hand, are often perishable, meaning that unused
capacity cannot be stored for future use or sale. For example, a restaurant might be full one night
and half empty the next. If the restaurant runs with an inflexible staffing model, expenses are the
same each night. However, the revenue picture is quite different, which impacts profits. The same
is true for Mt. Bachelor every empty seat on the chairlift is lost revenue.
This challenge can be overcome by carefully managing supply and demand. A restaurant might
operate with fewer staff during the week and hire additional staff to cover weekends when demand
is higher. This strategy will allow the restaurant to provide the same level of customer service with
varying customer demandand improve productivity. Does your business have peak periods?
What can you do to control supply and demand? Tip: Use pricing strategies and promotions to
stimulate demand for your service.
4) Variability. Once you have decided to buy a Honda Accord, you know that there will be no
variation in the quality of the Accord from one Honda dealer to another. Manufactured goods tend
to have automated processes and quality assurance procedures that result in a consistent product.
However, the quality of a service can vary by many factors, including who provides it, where it is
provided, when it is provided, and how it is provided. The more your business relies on humans to
provide services (instead of automation), the more susceptible you are to variability.
How can you manage this challenge? Establishing standard procedures (or checklists) can ensure
consistent service delivery. If you have employees, training is essential. Can technology improve
an aspect of your business? One obvious example of technologys impact is illustrated by ATMs
reducing bank teller service variability for customers. Dont forget the little things like invoicing

and newsletters. Any time you have a customer touch you have an opportunity to demonstrate
consistency and professionalism, which will translate into your customers perception that your
service is consistent in quality.
6. A few years ago, Oprah Winfrey collaborated with the famous KFC fast-food
chain to create a marketing campaign with an aim of fostering a good relationship
with their customers, by giving two free pieces of chicken to anyone who printed
a coupon from a prescribed website and hand it in at a KFC restaurant.
Everyone loves a freebie, as we all know. Many American customers thus helped
spread the words, whilst the media also helped give an enormous free press to the
campaign. Both the ingenious talk show and KFC were very pleasedfor a while.
The bomb went off when an enormous amount of customers went to KFC with
the said coupons, to the point that there was not enough chicken to go around.
Eventually, the campaign had to be cancelled halfway, prompting KFC executives
to apologise to their nation-wide customers; a despicable plea instead of being
delightfully please!
As mentioned, any scandals are not to be repeated, the media therefore helped
feed the fire by splashing KCFs failings all over their headlines. The company
was even sued over a number of allegations. In the end, KFC had to pay millions
US dollars in fines and compensations to those with couponswho have yet to
trade them in; basically losing both money and chicken, altogether with their
reputation.
Analyse the case above and develop some strategies to deal with the
problems. (You were a marketing manager at KFC.)
(25 Points)