Case 1: Helpless for Malfunction of Newly-Purchased Electronic Code Lock in Wee Hours The complainant bought an electronic lock from Company A with installation service included at a cost of $4,100. The 2-year warranty included on-site repair service for the first year. A week after installation, the complainant, who lived alone, left home at midnight for discarding rubbish. Upon return, she entered the password but failed to open the door. With nobody inside the apartment, the complainant had no choice but asked her friend to send a text message to Company A to seek help. After failing to receive any response from the company for nearly half an hour, the complainant then had to call a locksmith via her friend and re-entered her home with a locksmith service costing $1,200. The complainant contacted Company A the next day but the staff refused to take any follow-up action on the grounds that the problem had already been solved. The complainant found out later that the electronic lock was in fact a parallel import but this was never mentioned by the staff of Company A. The complainant demanded a refund from Company A and the reimbursement of $1,200 for the locksmith fee but received no response. After the Council's conciliation, Company A agreed to refund $3,280 after deducting the installation labour cost. The complainant accepted the offer and the case was resolved.
Case 1: Helpless for Malfunction of Newly-Purchased Electronic Code Lock in Wee Hours The complainant bought an electronic lock from Company A with installation service included at a cost of $4,100. The 2-year warranty included on-site repair service for the first year. A week after installation, the complainant, who lived alone, left home at midnight for discarding rubbish. Upon return, she entered the password but failed to open the door. With nobody inside the apartment, the complainant had no choice but asked her friend to send a text message to Company A to seek help. After failing to receive any response from the company for nearly half an hour, the complainant then had to call a locksmith via her friend and re-entered her home with a locksmith service costing $1,200. The complainant contacted Company A the next day but the staff refused to take any follow-up action on the grounds that the problem had already been solved. The complainant found out later that the electronic lock was in fact a parallel import but this was never mentioned by the staff of Company A. The complainant demanded a refund from Company A and the reimbursement of $1,200 for the locksmith fee but received no response. After the Council's conciliation, Company A agreed to refund $3,280 after deducting the installation labour cost. The complainant accepted the offer and the case was resolved.
Principles Of Marketing
17th Edition
ISBN:9780134492513
Author:Kotler, Philip, Armstrong, Gary (gary M.)
Publisher:Kotler, Philip, Armstrong, Gary (gary M.)
Chapter1: Marketing: Creating Customer Value And Engagement
Section: Chapter Questions
Problem 1.1DQ
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Question
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Analyse what ethical issues in marketing mix of case 1 that were complained by customers as indicated in the above press release. Use the relevant information from the press release to support your analysis.eg ethics in promotion/product/place/price
Transcribed Image Text:Case 1: Helpless for Malfunction of Newly-Purchased Electronic Code Lock in Wee Hours
The complainant bought an electronic lock from Company A with installation service included at a cost of $4,100. The 2-year
warranty included on-site repair service for the first year. A week after installation, the complainant, who lived alone, left home
at midnight for discarding rubbish. Upon return, she entered the password but failed to open the door. With nobody inside the
apartment, the complainant had no choice but asked her friend to send a text message to Company A to seek help. After
failing to receive any response from the company for nearly half an hour, the complainant then had to call a locksmith via her
friend and re-entered her home with a locksmith service costing $1,200.
The complainant contacted Company A the next day but the staff refused to take any follow-up action on the grounds that the
problem had already been solved. The complainant found out later that the electronic lock was in fact a parallel import but
this was never mentioned by the staff of Company A. The complainant demanded a refund from Company A and the
reimbursement of $1,200 for the locksmith fee but received no response. After the Council's conciliation, Company A agreed
to refund $3,280 after deducting the installation labour cost. The complainant accepted the offer and the case was resolved.
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