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Consumer Behavior B (Mktg 432) Question Paper
Consumer Behavior B (Mktg 432)
Course:Education
Institution: Kenya Methodist University question papers
Exam Year:2012
TIME : 2 HOURS
Instructions: Answer Question ONE and TWO other. Do not make notes on the question paper.
Question One
CASE STUDY
Satum is attempting to create committed customers. Satum, a division of General Motors, advertises around the theme
A different kind of Company
A different kind of car
Though Satum’s cars cost only $10,000 to $16,000, the firm attempts to provide its customers the same level of service and consideration typically associated with expensive luxury cars. Its stated objective is to be "the friendliest, best-liked company in the world". The company states:
"We’re going to do more than what the customer expects, and in the long/run, I think it will enhance our image".
Satum’s attempt to build a high-quality car built by skilled, caring workers and sold in helpful nonpressure dealerships, had received two small tests in its first two years. In one, it had to recall and replace 1,836 cars that had received improper coolant. In another it had to repair 1, 480 cars with faulty seat-back recliners. In the second case, the firm made a TV commercial showing a Saturn representative flying to location to fix the car of a resident who had purchased it in the first year of its launch.
However, in 1993 Satum began receiving reports of a wire short-circuiting and causing a fire – 34 fires reported. A dilemma ensued. A recall, involving 350,000 cars would be costly. Any negative publicity would depress sales.
Satum decided to deal with the problem in a manner consistent with its objective. It quickly notified all purchasers of affected cars, asking them to contact their dealers at no charge. The dealerships extended their operating hours, hired extra personnel, arranged door to door pickup and delivery, provided free car washes, and often provided barbecues or other festivities.
Satum’s director of consumer marketing said:
’The measures of whether we are a different kind of company is how we handle the bad times as well as the good. We are trying to minimize the inconvenience and show that we stand behind the cars, so that our owners don’t lose faith in us or the cars".
How have consumers responded to the recall? Mrs K, a customer, learned of the recall from friends who had heard of it on news reports before she received her letter from Satum. She took her carto the dealer who served her coffee and doughnuts during the 24-minute repair. Her response?
" I expected this would be my first experience with Satum. But it was so positive, I trust them even more than when I purchased the car".
Required:
A description of the evaluative process followed by the consumers and outcome that Mrs. K went through.
(10 Marks)
An evaluation of the manner in which Satum handled the recall . Any options?
(10 Marks)
How will publicity about the recall affect Satum’s image among non-owners?
Question Two
Discuss the following types of buying decision behavior:
Complex buying behavior
(3 Marks)
Dissonance-reducing buying behavior
(3 Marks)
Explain how the needs Hierachy Theory explains the decision of a senior civil servant in TSC who resigns to seek political office.
(14 Marks)
Question Three
Explain how the cultural, social, and psychological factors affect the consumption of education in Kenya. (20 Marks)
Question Four
Discuss the business buying process with respect to a boarding high school.
What is a government market?
(10 Marks)
Discuss the advantages and disadvantages of working in a contract situation with the Kenya Government.
(6 Marks)
Question Five
Discuss the following types of buying situations.
Straight rebuy
(4 Marks)
Modified rebuy
(4 Marks)
New task
(4 Marks)
How do environmental factors influence business buyers?
(8 Marks)
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