MODULE 4

BUSINESS STUDIES XII

MARKETING AND CONSUMER PROTECTION

MARKETING

Q1. A marketer of colour TV, having 20% of the current market share of the country, aims at
enhancing the market share to 50 per cent in the next three years. To achieve this objective, he
specified an action programme. Name the function of marketing being discussed above.

a. Marketing planning
b. Product designing and development
c. Promotion
d. Branding (1)

Q2. Tapas Sen, a manufacturer, redesigned his existing soup making machine into a small and
portable machine. For selling the machine he entered into an agreement with his uncle who agreed
to finance the project with a 50% share in the profits. To launch the machine they decided to start
with direct channels of distribution. They named the venture as 'Cup-a-Soup'. In the first year their
main objective was profit maximisation. They appointed 30 trained salesmen for distribution of the
machines across the country. They offered incentives and awards to salesmen for achieving their
sales targets.

Identify the marketing philosophy used by 'Cup-a-Soup'.

a. Product concept
b. Production concept
c. Selling concept
d. Marketing concept (1)

Q3. How does branding help in creating product differentiation? Does it help invthe marketing of
goods and services? Explain. (3)

Q4. Distinguish between the Product Concept and Production concept. (4)

Q5. What is marketing mix ? What are its main elements? Explain. (6)

Q6. Reema, Vibha and Ratna are three women entrepreneurs who are engaged in dealing with
handicraft goods under the brand name 'Gujkriti' through a chain of retail outlets at five different
places in Delhi. They outsource all their products from tribal and rural women in the state of
Rajasthan. Reema is of the opinion that in order to increase the sale of their products, they should
advertise about it on television. But, Ratna is arguing that advertisement expenses will add to cost of
operation. Whereas Vibha is insisting that they should set up an online portal to market their
products across the globe.

In the context of above case :

a. Identify the tool of promotion being taken into consideration by Reema by quoting lines from
the paragraph.
b. How is the channel of distribution being suggested by Vibha different from the channel of
distribution being used by them presently ? (4)

Q7. Ranger India Limited, is an automobile manufacturer in India. It makes 1.5 million family cars
every year. That’s one car every 12 seconds. It has a sales network of company approved retailers
that spreads across 600 cities.

In the context of above case :

(a) Identify the type of the channel of distribution adopted by the company.
(b) State the market related factors that are likely to affect the decision of a marketer about the
choice of channel of distribution. (6)

CONSUMER PROTECTION

Q1. Assertion (A) : Consumer protection can, in effect, be achieved only when the consumers also
understand their responsibilities.

Reason (R) : The government can protect the interests of the consumers by enacting various
measures.

a. Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of
Assertion (A).
b. Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of
Assertion (A).
c. Assertion (A) is True, but Reason (R) is False.
d. Assertion (A) is False, but Reason (R) is True. (1)

Q2. Assertion (A) : For the redressal of consumer grievances, the Consumer Protection Act 2019
provides for setting up of a three-tier enforcement machinery.

Reason (R) : They are briefly referred to as the ‘District Commission’, ‘State Commission’, and
the ‘National Commission’, respectively.

a. Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of
Assertion (A).
b. Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of
Assertion (A).
c. Assertion (A) is True, but Reason (R) is False.
d. Assertion (A) is False, but Reason (R) is True. (1)

Q3. Which consumer right suggests that a consumer is to be protected against goods and services
hazardous to life and health ?

(a) Right to be heard. (c) Right to be assured.

(b) Right to safety. (d) Right to be informed. (1)

Q4. Mohit purchased a smart phone for? 30,000 from a mobile phone seller on his verbal
commitment that the smart phone will be replaced in case of any defect, within a span of six
months. The phone started creating technical issues in spite of proper maintenance and upkeep of
the phone. The seller denied taking any action on the complaint made by Mohit.
Name the redressal agency under the Consumer Protection Act where Mohit can file his complaint.

a. District Commission
b. State commission
c. National commission
d. None of the above (1)

[Link] Sonika's birthday, her mother gave her a pair of gold earrings. After one month,Sonika
observed that the earrings were losing their shine. She checked the mark on the earrings and found
that it was not a proper Hallmark and her mother had been cheated by the shopkeeper. So, she filed
a complaint in the District Forum which rejected it. Not satisfied by the decision of the district forum,
she was very much disturbed and after two months, she decided to appeal further.

Can Sonika appeal against the decision of the district forum? Give reason in support of your answer.
(3)

Q6. Himanshu purchased a new car from 'Galaxy Motors' for Rs.25 lakh. He was offered free
insurance for the first year and three free servicing to be availed after the car had covered 5,000 km,
10,000 km and 15,000 km, respectively. When Himanshu took the car for the first free servicing, he
was told that the car was not new and first service had already been availed on this car. He felt
cheated and filed a complaint in the State Commission. Being not satisfied with the decision of the
State Commission, after two months he decided to file an appeal against it.

Can Himanshu appeal against the decision of the State Commission ? Give reason in support of your
answer. (3)

Q7. Palak went to a shopkeeper to buy a hair oil. The shopkeeper forced her to buy a particular
brand of hair oil out of various available brands, irrespective of the willingness of Palak. Which right
of Palak, as a consumer, has been violated ? Name and explain the right. (3)

Q8. Harsh asked for a bottle of mineral water from a shopkeeper. The maximum retail price printed
on the bottle was Rs. 12 only whereas the shopkeeper was charging Rs.35. In spite of many
arguments, the shopkeeper was not ready to sell the bottle for less than Rs.35. Harsh was in need of
it and had no option except to buy. As an aware consumer, name and explain the right which Harsh
can exercise. (4)

Q9. Aryan went to purchase a pack of chocolate for his son from a shop in the nearby market.
Despite his preference to buy a pack of a particular brand the shopkeeper forced him to buy the pack
of chocolate of another brand, by giving some odd justifications. After coming back home, Gaurav
was feeling very dissatisfied.

a. Identify and explain the right of the consumer being violated in the above mentioned case.
b. Briefly explain any two points highlighting the importance of consumer protection from the
consumer’s point of view.

Q10. 'Vastra Ltd.' is engaged in the manufacturing of apparel. Over the years, it has became a
popular brand due to its good product quality and exclusive designing. The company plans to open
its own retail showrooms in metropolitan cities in India. In order to meet its financial needs it has
offered for subscription an IPO of Rs.4 lakh equity shares in the price band of Rs.430 – Rs.445 each.
As per the guidelines of SEBI, the company has provided a complete disclosure of the relevant details
in its prospectus.
a. Identify and explain the right of the consumer being fulfilled by the directives of SEBI in the
above mentioned case.
b. Briefly explain any two points highlighting the importance of consumer protection from the
point of view of the businessmen. (4)

[Link] purchased a packet of juice from the local grocery shop. The information provided on the
packet was not clear. She fell sick on consuming it. She filed a case in the District Forum under
Consumer Protection Act and got the relief.

(a) Identify the important aspect which has been neglected by the marketer in the above case.

(b) Explain briefly the functions of the aspect identified in (a) above. (6)

Q12. Explain the responsibilities of a consumer . (6)