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Management and Marketing
Subject Code: MKTG10001
Subject Name: Principles of Marketing
Writing Time: 2 hrs
Reading Time: 30 minutes
Open Book Status: No
Number of Pages (including this page): 6
Authorised Materials:
Non-electronic English-other language translation dictionaries
Instructions to Students:
This examination contributes 60% to the final subject mark.
This examination paper includes 1 section.
Section 1: Contains 6 essay questions. You are required to answer 3 questions only. This section
accounts for 60 marks. Use the case study provided to help you answer the questions.
Instructions to Invigilators:
Student may keep the paper: No
Student may annotate the paper during reading time: Yes
Extra Materials Required:
N/A
2
SECTION 1
Please analyse the case on pages 3 – 6 using the questions below. Answer 3 of the 6 following
questions. Each question is equally weighted (20% of your total grade). You should spend the same
amount of time on each question (40 minutes). Ensure that you use evidence from the case and
relevant Principles of Marketing theories and terminologies when answering the questions. Start
each question on a separate page. You may use headings to break up your response for each
question.
1) What are the steps in the consumer decision-making process? Explain how XFashion’s
business model has transformed the way fashion consumers go through this process,
creating value for its customers. In moving forward, how would you advise XFashion to
further leverage the stages of the decision-making process to improve its value
proposition? Recommend two actions. (20 marks)
2) What is the difference between customer satisfaction and customer loyalty? How do
XFashion’s efforts to collect data about customers influence these customers’ satisfaction
with the company? In addition to attempting to increase customer satisfaction, what
would you recommend XFashion to do to build loyalty among its customers? Consider
both short-term and long-term strategies. (20 marks)
3) What are the characteristics indicative of an attractive market segment? Considering these
characteristics, explain why XFashion has refrained from targeting the luxury segment
and decided to target the male segment. How would you recommend that XFashion
adjusts its marketing mix if it were to target the luxury segment? Consider all four
elements of the marketing mix. (20 marks)
4) What is the difference between brand identity and brand image? Indicate the two key
benefits of the Elena Marin + XFashion collaboration for each of the brands. What
strategies would you recommend for XFashion to strengthen its brand image among plus-
size fashion consumers? Indicate two strategies. (20 marks)
5) What is meant by marketing ethics? What are the business, moral/ethical, and legal
implications of the customer information XFashion collects? What recommendations do
you have for XFashion regarding their short- and long-term plans around using their
customers’ personal information? Consider both the benefits and limitations of the
recommended strategy. (20 marks)
6) What is the difference between products and services? How are these differences
accounted for in the ways XFashion and Celebrity Rent developed their pricing
strategies? What pricing strategy would you recommend for XFashion to adopt to
stimulate adoption of XFashion Men among the men’s apparel segment? (20 marks)
END OF SECTION
3
CASE: XFashion
XFashion, established in 2016 in San Francisco, has disrupted the fashion retail industry. With input
from the customer, who completes fashion surveys, and collaboration between artificial intelligence
(AI) and human stylists, the online styling service eliminates the need for customers to shop for
clothing or even browse online. XFashion delivers a personalized selection of fashion products right
to the customer door on a regular schedule, determined by the customer. Customers can keep all the
products or return what they do not like. Personal stylists and algorithms use this feedback as data to
get better at determining the preferred style for each customer.
XFashion CEO Lisa Camwell says that the company is transforming the way people shop. To do
that, the company employs more than 3,000 stylists and more than 75 data scientists. Camwell says
that digging through racks of clothing at the mall or trying to find a perfect pair of pants by visiting
dozens of stores online is crazy. “I just don’t believe that could possibly be the future.”