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Sally has just bought Fit Fast Bikes, a business which sells exercise bicycles - HSC - SSCE Business Studies - Question 26 - 2015 - Paper 1
Question 26
Sally has just bought Fit Fast Bikes, a business which sells exercise bicycles. Its advertising states that a customer who uses the bike for 10 minutes per day is g... show full transcript
Worked Solution & Example Answer:Sally has just bought Fit Fast Bikes, a business which sells exercise bicycles - HSC - SSCE Business Studies - Question 26 - 2015 - Paper 1
Step 1
describe the consumer laws that Fit Fast Bikes may be breaking
Answer
Fit Fast Bikes may be violating several consumer laws, specifically related to deceptive advertising and misleading claims. The guarantee of losing 20 kg by using their bikes for only 10 minutes a day can be seen as misleading, as consumers might expect results that are unrealistic without proper diet and exercise. Additionally, the lack of refunds or repairs goes against the implied conditions of most consumer protection laws, which require businesses to ensure customer satisfaction and provide remedies for faulty goods.
Step 2
propose human resource strategies to manage the current sales staff more effectively
Answer
To improve the performance of sales staff, Fit Fast Bikes could implement several human resource strategies:
- Training and Development: Provide regular training on ethical sales practices and product knowledge to ensure sales staff can honestly inform customers and build trust.
- Performance Management: Establish clear performance metrics that encourage ethical behavior rather than solely focusing on commissions. This can reduce pressure on staff to make exaggerated claims.
- Rewards System: Create a reward system that recognizes not only sales numbers but also customer satisfaction ratings to promote a more balanced approach to sales.
Step 3
explain how marketing and human resource management are interdependent at Fit Fast Bikes
Answer
Marketing and human resource management are closely linked at Fit Fast Bikes. Effective marketing relies on truthful representation of products, which is supported by well-informed staff. If the sales team is trained to promote the business ethically, they can positively impact customer satisfaction and brand reputation. Conversely, human resource practices that develop sales staff's skills in customer service and product knowledge directly enhance marketing efforts by ensuring that customers receive accurate information and feel valued. This synergy can lead to improved sales performance and customer loyalty.