CONFIDENTIAL 1 CS/FJAN2023/STA589

UNIVERSITI TEKNOLOGI MARA

FINAL ASSESSMENT

COURSE : MARKETING MODELS

COURSE CODE : STA589
EXAMINATION : JANUARY 2023
TIME : 2 HOURS

INSTRUCTIONS TO CANDIDATES

1. This question paper consists of four (4) questions.

2. Answer ALL questions in English. Please write your answer in your own paper using a pen.

3. Students must ensure that their answers are readable.

4. Please check to make sure that this examination pack consists of :

i) the Question Paper

DO NOT TURN THIS PAGE UNTIL YOU ARE TOLD TO DO SO

This examination paper consists of 5 printed pages
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Question 1 (17 marks)

a) Describe market response model based on its process and its usage.
(5 marks)

b) Figure below shows weekly units sold of a promotional product in two stores Store=4
and Store 5. Describe the phenomena seen in both stores.

(4 marks)

c) A brand switching matrix for five brands in a Fast Moving Consumer Goods
(FMCG)category is shown below for Weeks 1 and 2. Of the five brands, brand C
decreased its price by 1% from Week 1 to 2 whereas all the other brands kept their
prices the same across the two weeks.

Week 2

Week 1 A B C D E

A 399 190 90 52 80
B 195 199 55 47 31
C 75 54 187 22 9
D 54 44 23 110 22
E 82 26 12 27 65

i. What is Brand C’ self-price elasticity of demand? Show work.

ii. What is Brand C’s market share in Week 2? Show work.
(8 marks)

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Question 2 (14 marks)

a) Identify and give an example for a type of segmentation that could be used to
segment house buyers in the Malaysian housing market.
(4 marks)

b) Gemilang Real Estate is a real estate company that will offer apartment units for rental
at the Bandar Sunway community. Gemilang's units are strategically located at the
university area, hospitals, and Sunway Pyramid Mall. Internet access, safety
measures, cutting edge features, and a positive atmosphere for all tenants are
promised by the real estate company.
Identify the potential target segment for Gemilang Real Estate and explain your
answer.
(4 marks)

c) Product Life Cycle is a term referring to the typical sales pattern of a product over
time, from the stage of introduction to its decline stage.

Based on Product Life Cycle in Figure 1,

i. describe the characteristics of a product in the Introduction Stage,
ii. give an example of a product that is now in the Decline Stage
iii. based on your answer in (ii) state TWO (2) reasons a product has reached its
final stage of the life cycle.
(6 marks)

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Question 3 (8 marks)

Given that the number of adopters of Steam Iron until time t can be calculated as such:

n(t ) = pN + (q − p) N (t − 1) − (q / N ) N 2 (t − 1)

And the innovation parameter, p is 0.031, initiation parameter q is 0.128 and Market Size at
the start price is 20000. The table below shows the calculation of the number of adopters of
Steam Iron since its introduction.

a) Determine the duration the product has to be on the market before it reaches the
maximum number of adopters.
(3 marks)

b) Determine the maximum sales volume and the duration for it to be in the market.
(3 marks)

c) What will happen if the innovation parameter p increases to 0.1?

(2 marks)
p= 0.031
q= 0.128
N 20000

Cumulative
t Sales Sales
0 0 0
1 620 620
2 678 1298
3 735 2033
4 791 2824
8 960 6445
12 966 10361
16 796 13845
20 548 16413
24 330 18041
28 183 18973
32 97 19473
36 50 19733
40 25 19866
44 13 19933
48 6 19966
52 3 19983
56 2 19992

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60 1 19996
64 0 19998
68 0 19999
72 0 19999
76 0 20000
77 0 20000

Question 4 (21 marks)

a) Describe three factors that determine pricing.

(6 marks)

b) Since its initial founding in 1998, Fattal Hotel Group has earned a reputation for
effective distribution processes that have seen the company maintain higher
occupation rates than any of its competitors regardless of the time of year. Key to
Fattal’s high guest traffic numbers is its strategy of overbooking standard room
categories to ensure maximum occupancy and revenue performance.
i. What is the pricing tool that should be adopted by Fattal Hotel Group?
ii. Suggest any TWO (2) criteria needed to enable the hotel industry to apply the
pricing tool mentioned in (i).
iii. Explain TWO (2) advantages of using this practice.
(5 marks)

c) Say, you want to buy a car and your criteria are Safety, Comfort and Cost.
Figure below describes the importance of the criteria to you.

At the same time, you have two alternatives, Car 1 and Car 2. Now, you will be asked
to judge the 2 cars against one of your Criteria "Safety". Suppose your belief is that
Car 2 is 9 times safer than Car 1. Suppose you also found that, the 'Car 1' price is 7
times preferable to 'Car 2' price. And finally, you are asked to judge the options based
on "Comfort". Say, Car 2 is 5 times as much comfortable as Car 1. Without checking
the consistencies of the judgement, determine your best alternative using the
Analytical Hierarchy Process (AHP) method.
(10 marks)

END OF QUESTION PAPER

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