MKT362 Pricing End Course Assessment Case Study | SUSS

Section A 

Answer all questions in this section.

Question 1

Article for Question 1

Food delivery service FoodPanda was investigated for touting free delivery for subscribers in widely circulated ads. The advertisement promoted “Unlimited Free Delivery on All Restaurants” for the service. This was displayed across multiple platforms, including FoodPanda’s social media, its in-app marketing, billboards and signages at public areas such as bus stops. In fact, in respect of food delivery fees, FoodPanda subscribers only received a $3 discount for all restaurants or a discount of up to $6 for selected restaurants. Contrary to the advertised “free delivery on all restaurants” which ran from 1 July to 30 September 2024, the Competition & Consumer Commission Singapore (CCCS) discovered that over 40% of food delivery transactions made by the subscribers on all restaurants, required a residual delivery fee to be paid after the discounts were applied.

Alvin Koh, chief executive at CCCS, said, “When a business offers ‘free’ services to entice the consumer to try a service, it is not unreasonable for an average consumer to understand 'free' to mean that nothing will be charged. Businesses must ensure that their claims are accurate. Transparent pricing is crucial for consumers to make informed purchases and to allow all businesses to compete fairly.”

Following the investigation, FoodPanda has acknowledged CCCS’s concern and agreed to take the following actions:

• Provide a full refund of subscription fees to customers who had subscribed during the promotional period;
• Provide clarification to customers who had subscribed during the promotional period and the public on the terms of the subscription;
• Review its existing and future marketing materials for the subscription to ensure compliance with Singapore’s fair trading laws.

Question 1a

As the Marketing Consultant for FoodPanda, you are tasked to educate and to equip the company on the legal requirements of price transparency in Singapore. With reference from CCCS’ Guidelines on Price Transparency and the Consumer Protection Fair Trading Act CPFTA, distinguish three (3) ways how the company’s marketing materials in the article, are misrepresentations to the public.

Question 1b

Design an improved version of the advertisement (in compliance to CPFTA) to correctly and clearly communicate this pricing. This one-page visual, is a stand-alone advertisement to target FoodPanda’s customers.

Question 2

Question 2a

To further facilitate FoodPanda and its staff on the legal compliance of pricing in Singapore, examine two (2) disadvantages of Price Fixing for businesses and convince why it is illegal in Singapore under the Competition Act.

Question 2b

If modern Artificial Intelligence AI ‘decides’ prices for competing businesses without human intervention, can the companies leveraging such modern technology still be held liable for AI-generated pricing? In the context of Singapore, inspect how AI-generated pricing pervades the three (3) aspects of law, technology, and the accountability of stakeholders.

Section B 

Answer all questions in this section.

Video Recording (Item 2)

Question 3

Prepare and submit a Video recording (in .mp4 format) of the presentation following ALL the instructions below. Refer to Canvas T/TG/RESIT course site > Assignments > ECA_VIDEO for the step-by-step guide on how to submit the video.

This Video file is a recording of you presenting answers for only Q2(a) and Q2(b). You may use any presentation software during your video presentation, BUT this video must be submitted in .mp4 format. As you present, you should show your Presentation Slides (in Section C) in the background or be displayed on a screen next to you. Both you & the screen are to face the camera together and must be seen together in the same video frame. The length of the video recording must NOT exceed 6 minutes. Ensure adequate clarity for both the video and audio quality of your submission. If the Examiner is unable to identify, see or hear, or understand the presenter clearly, he will not be able to assess and therefore be unable to award marks. You must label your Video file exactly as instructed in the guide in Canvas.

Section C 

Answer all questions in this section.

Deck of Presentation Slides (Item 3)

Question 4

Prepare and submit a set of Presentation Slides (in PDF format) upon which the video presentation (in Section B) is based. Please note that only slides in PDF format will be accepted.

This deck of Presentation Slides (upon which your video presentation is based) consists of your answers to only Q2(a) and Q2(b). This deck must be submitted in PDF format and must NOT exceed ten (10) slides (exclude Cover Page, Appendices, & References). You may use any presentation software for your video presentation. Submit online in Canvas via TurnItIn. Please DO NOT download and use PowerPoint slide design templates from the Internet. Indicate the following particulars in the Cover Page of your submission: Course Code, Title of the ECA, your FULL name, SUSS PI No., and submission date. You must label your slide deck exactly as instructed in the guide in Canvas.

Appendix:

Q1)

https://www.cccs.gov.sg/legislation/consumer-protection-fair-trading-act/pricetransparency-guidelines

https://www.cccs.gov.sg/legislation/consumer-protection-fair-trading-act

Q2

https://www.cccs.gov.sg/anti-competitive-behaviour/anti-competitive-agreements

https://www.cccs.gov.sg/legislation/competition-act

CCCS Guidelines on the Section 34 Prohibition