4. PT B is a newcomer or a new player in the home appliance electronics industry. As we know that in the home appliance electronics industry itself, there are many brands and good players from both local and foreign countries. To face competition with incumbent players, PT A applies an advertising strategy. PT conducts advertising through social networking sites such as: Instagram, Facebook, mailing lists, and the like.
PT B sells air conditioner products for home use. PT B said that the AC compressor used was of high quality, imported from Japan. PT B provides a 2 year service warranty and a 3 year compressor warranty. This warranty is higher than its competitors, which on average only provide a service and compressor warranty for 1 year. In every advertisement published, PT B always mentions this guarantee as an advantage of its product services compared to competitors. PT B also claims to have service centers in big cities in Indonesia.
However, over time, many consumers began to complain, it turns out that the AC compressor used is not imported from Japan and the compressor is not durable. When there was damage, it was also difficult to find a service center, because it turned out that many of PT B’s service centers had closed. Existing service centers often make it difficult for customers with long processing times, due to the availability of spare parts.
Question:
a. Analyze the case from the point of view of advertising issues!
b. Give your recommendation for management from PT B!
