CBSE 12th Maths Examination - 2017

This post is to list the updated information about 12th CBSE Board Examination. We know about fiasco over Mathematics question of CBSE last year and subsequent grace marks to the tune of 15. What a student can expect this year and how can he prepare within next 90 days.We know that discussion and exchange of notes always make academics better. First let me share some information about a CBSE circular on Maths paper of 2017:

"Mumbai: After tough mathematics exams for two years, the Central Board of Secondary Education (CBSE) has toned down the difficulty level for Class XII students. The new question paper design has capped the higher order thinking skills (HOTS) questions at 10% and introduced two-mark questions to bring relief to lakhs of students.

In a circular on the board's website, the CBSE said the changed question paper design would be applicable for the board examination scheduled to be held in 2017.

The HOTS questions will now be split into three two-mark questions and one four-mark question in the 100-mark paper. Teachers in the city said there had been no specification on the inclusion of HOTS questions but it varied between 10 and 20%. "It is good that the CBSE has now defined what to expect and students can prepare themselves well. Also, splitting the HOTS into three two-mark questions (see box) will mean that students can at least attempt some of them," said Jeeja K, teacher at R N Podar School, Santacruz. The CBSE categorized 20% of the paper as easy, 60% as average and 20% as difficult. With the introduction of short answers (two-mark questions), the total number of questions has increased from 26 to 29. Teachers feel it will help students score better. "When a student doesn't know how to answer a six-mark question, he or she loses out on all the six marks. With more questions with fewer marks, they are likely to lose fewer marks. Shorter questions take lesser time to solve," said Kalpana Dwivedi, principal, St Joseph High School, Panvel.

During the board examination this March, the CBSE had drawn a lot of flak over the difficulty level of the mathematics paper. Apart from social media outrage, the issue was also discussed in Parliament. Following this, the CBSE had assured to place the issue before a committee of subject experts and take remedial measures before evaluation. " Source: Times of India, 11th August, 2016.

Syllabus of 12th Maths CBSE ( Source: http://www.cbsesyllabus.in/class-12/mathematics-class-12-syllabus) 

Mathematics Class 12 Syllabus

Course Structure

Unit	Topic	Marks
I.	Relations and Functions	10
II.	Algebra	13
III.	Calculus	44
IV.	Vectors and 3-D Geometry	17
V.	Linear Programming	6
VI.	Probability	10
	Total	100

Unit I: Relations and Functions

1. Relations and Functions

Types of relations: reflexive, symmetric, transitive and equivalence relations. One to one and onto functions, composite functions, inverse of a function. Binary operations.

2. Inverse Trigonometric Functions

Definition, range, domain, principal value branch. Graphs of inverse trigonometric functions. Elementary properties of inverse trigonometric functions.

Unit II: Algebra

1. Matrices

Concept, notation, order, equality, types of matrices, zero and identity matrix, transpose of a matrix, symmetric and skew symmetric matrices. Operation on matrices: Addition and multiplication and multiplication with a scalar. Simple properties of addition, multiplication and scalar multiplication. Noncommutativity of multiplication of matrices and existence of non-zero matrices whose product is the zero matrix (restrict to square matrices of order 2).Concept of elementary row and column operations. Invertible matrices and proof of the uniqueness of inverse, if it exists; (Here all matrices will have real entries).

2. Determinants

Determinant of a square matrix (up to 3 x 3 matrices), properties of determinants, minors, co-factors and applications of determinants in finding the area of a triangle. Adjoint and inverse of a square matrix. Consistency, inconsistency and number of solutions of system of linear equations by examples, solving system of linear equations in two or three variables (having unique solution) using inverse of a matrix.

Unit III: Calculus

1. Continuity and Differentiability

Continuity and differentiability, derivative of composite functions, chain rule, derivatives of inverse trigonometric functions, derivative of implicit functions. Concept of exponential and logarithmic functions.

Derivatives of logarithmic and exponential functions. Logarithmic differentiation, derivative of functions expressed in parametric forms. Second order derivatives. Rolle's and Lagrange's Mean Value Theorems (without proof) and their geometric interpretation.

2. Applications of Derivatives

Applications of derivatives: rate of change of bodies, increasing/decreasing functions, tangents and normals, use of derivatives in approximation, maxima and minima (first derivative test motivated geometrically and second derivative test given as a provable tool). Simple problems (that illustrate basic principles and understanding of the subject as well as real-life situations).

3. Integrals

Integration as inverse process of differentiation.Integration of a variety of functions by substitution, by partial fractions and by parts, Evaluation of simple integrals of the following types and problems based on them.

Definite integrals as a limit of a sum, Fundamental Theorem of Calculus (without proof). Basic propertiesof definite integrals and evaluation of definite integrals.

4. Applications of the Integrals

Applications in finding the area under simple curves, especially lines, circles/parabolas/ellipses (in standard form only), Area between any of the two above said curves (the region should be clearly identifiable).

5. Differential Equations

Definition, order and degree, general and particular solutions of a differential equation.Formation of differential equation whose general solution is given.Solution of differential equations by method of separation of variables solutions of homogeneous differential equations of first order and first degree. Solutions of linear differential equation of the type:

dy/dx + py = q, where p and q are functions of x or constants.

dx/dy + px = q, where p and q are functions of y or constants.

Unit IV: Vectors and Three-Dimensional Geometry

1. Vectors

Vectors and scalars, magnitude and direction of a vector.Direction cosines and direction ratios of a vector. Types of vectors (equal, unit, zero, parallel and collinear vectors), position vector of a point, negative of a vector, components of a vector, addition of vectors, multiplication of a vector by a scalar, position vector of a point dividing a line segment in a given ratio. Definition, Geometrical Interpretation, properties and application of scalar (dot) product of vectors, vector (cross) product of vectors, scalar triple product of vectors.

2. Three - dimensional Geometry

Direction cosines and direction ratios of a line joining two points.Cartesian equation and vector equation of a line, coplanar and skew lines, shortest distance between two lines.Cartesian and vector equation of a plane.Angle between (i) two lines, (ii) two planes, (iii) a line and a plane.Distance of a point from a plane.

Unit V: Linear Programming

1. Linear Programming

Introduction, related terminology such as constraints, objective function, optimization, different types of linear programming (L.P.) problems, mathematical formulation of L.P. problems, graphical method of solution for problems in two variables, feasible and infeasible regions (bounded and unbounded), feasible and infeasible solutions, optimal feasible solutions (up to three non-trivial constraints).

Unit VI: Probability

1. Probability

Conditional probability, multiplication theorem on probability. independent events, total probability, Baye's theorem, Random variable and its probability distribution, mean and variance of random variable. Repeated independent (Bernoulli) trials and Binomial distribution.

The CBSE time table is expected in the first week of January and soon we will get to know the date sheet! 

Date sheet for class 12 exams, 2017:

Thursday, March 9, 2017
ENGLISH ELECTIVE –NCERT
ENGLISH ELECTIVE-CBSE(FUNCTIONAL ENGLISH)
ENGLISH CORE

Friday, March 10, 2017
DANCE –KATHAK
DANCE-BHARATNATYAM
DANCE –ODISSI
DANCE-KATHKALI
CREATIVE WRITING & TRANSLATION STUDIES
SINDHI OFFICE COMMUNICATION
INFORMATION STORAGE & RETRIVAL
INTEGRATED TRANSPORT OPERATION
FRONT OFFICE OPERATIONS
TRAVEL AGENCY & TOUR OPERATIONS BUSINESS (NSQF)
SALESMANSHIP-II
CAPITAL MARKET OPERATIONS
BANKING-II

Also read: CBSE exams 2017 to begin from March 9, postponed by a week due to elections

Wednesday, March 15, 2017
PHYSICS
PERSIAN
SECRETARIAL PRACTICE & ACCOUNTING
AIR CONDITIONING & REFRIGERATION – III
OPTICS –II
RADIOGRAPHY-I GENERAL
ELECTRICAL MACHINE
CLINICAL BIO-CHEMISTRY (MLT)
CHILD HEALTH NURSING
GARMENT CONSTRUCTION –II
TRADITIONAL INDIAN TEXTILE

Thursday, March 16, 2017
BUSINESS STUDIES
BASIC HORTICULTURE-II
BEAUTY & HAIR -II
OPERATION & MAINTENANCE OF COMMUNICATION DEVICES

Saturday, March 18, 2017
URDU ELECTIVE
PUNJABI
TAMIL
MANIPURI
MALAYALAM
ASSAMESE
KANNADA
URDU CORE

Monday, March 20, 2017
MATHEMATICS
FIRST AID & EMERGENCY MEDICAL CARE
CLINICAL BIO-CHEMISTRY & MICROBIOLOGY-II
MICROBIOLOGY (MLT)
HEALTH CENTRE MANAGEMENT
OPTHALMIC TECHNIQUES-II
RADIOGRAPHY-II (SPECIAL INVESTIGATION IMAGING RADIOGRAPHY)

Tuesday, March 21, 2017
SHORTHAND ENGLISH
SHORTHAND HINDI
FASHION STUDIES
AGRICULTURE
ODIA
GERMAN
RUSSIAN
ENGINEERING SCIENCE
DATABASE MANAGEMENT APPLICATION (NSQF)

Thursday, March 23, 2017
HISTORY
RETAIL SERVICES-II(NSQF)
LOGISTICE OPERATION & SUPPLY CHAIN MANAGEMENT –II
BUSINESS OPERATION & ADMINISTRATION –II
LABORATORY MEDICINES (CLINICAL PATHOLOGY HEMATOLOGY & HISTOPATHOLOGY –II (MLT)

Friday, March 24, 2017
FOOD PRODUCTION III
INTRODUCTION TO HOSPITALITY MANAGEMENT(NSQF)

Also read: CBSE Class 10th and 12th exams 2016 Datesheet

Saturday, March 25, 2017
CHEMISTRY APPLIED PHYSICS
FOOD & BEVERAGE COST & CONTROL
FLORICULTURE
COST ACCOUNTING
BIOLOGY OPTHALMIC-II
RADIATION PHYSICS

Monday, March 27, 2017
INFORMATICS PRACTICES
COMPUTER SCIENCE
ADVANCED FRONT OFFICE OPERATIONS
OLERICULTURE – II
INSURANCE –II
BASIC PATTERN DEVELOPMENT

Wednesday, March 29, 2017
ACCOUNTANCY
BAKERY-II
HOLISTIC HEALTH –II
SECURITY(NSQF)

Thursday, March 30, 2017
FOOD PRODUCTION IV

Friday, March 31, 2017
ENGINEERING GRAPHICS
HERITAGE CRAFTS
HUMAN RIGHTS & GENDER STUDIES
LIBRARY AND INFORMATION
SCIENCE
TIBETAN
JAPANESE
SPANISH
MECHANICAL ENGINEERING
MARKETING- II
TEXTILE CHEMICAL PROCESSING
WEB APPLICATION – II (NSQF)

Saturday, April 1, 2017
KNOWLEDGE TRADITIONS & PRACTICE OF INDIA
LEGAL STUDIES
GRAPHIC DESIGN
HEALTH EDUCATION, COMMUNICATION AND PUBLIC
RELATIONS & PUBLIC HEALTH
THE CREATIVE & COMMERCIAL PROCESS IN MASS MEDIA-II
PRINTED TEXTILE
TYPOGRAPHY & COMPUTER APPLICATION(ENG.)

Monday, April 3, 2017
POLITICAL SCIENCE
LABORATORY MEDICINE-II
RETAIL OPERATIONS-II(NSQF)
FINANCIAL ACCOUNTING-II

Wednesday, April 5, 2017
BIOLOGY
TAXATION-II
DERIVATIVE MARKET OPERATIONS
AIR CONDITIONING & REFRIGERATION-IV

Also read: CBSE Board exams 2017 not to be delayed due to assembly polls

Thursday, April 6, 2017
GEOGRAPHY
BIOTECHNOLOGY
LIBRARY SYSTEMS & RESOURCE MANAGEMENT

Monday, April 10, 2017
PHYSICAL EDUCATION

Wednesday, April 12, 2017
SOCIOLOGY

Monday, April 17, 2017
ECONOMICS
TROUBLE SHOOTING & MAINTENANCE OF ELECTRONIC EQUIPMENT

Tuesday, April, 18, 2017
HOME SCIENCE

Wednesday, April 19, 2017
PAINTING
GRAPHICS
SCULPTURE
APPLIED ARTS-COMMERCIAL ARTS
ELECTRICAL APPLIANCES
CONFECTIONERY

Thursday, April 20, 2017
THEATRE STUDIES
TANGKHUL

Saturday, April 22, 2017
HINDI ELECTIVE
GUJARATI
NEPALI
LIMBOO
LEPCHA
BHUTIA
HINDI CORE

Monday, April 24, 2017
PSYCHOLOGY

Tuesday, April 25, 2017
MUSIC KARANATAKA (VOCAL)
MUSIC KARANATAKA INSTRUMENTAL (MELODIC)
MUSIC HINDUSTANI VOCAL
MUSIC HINDUSTANI INSTRUMENTAL MELODIC
MUSIC HINDUSTANI INSTRUMENTAL PERCUSSION

Wednesday, April 26, 2017
MASS MEDIA STUDIES

Also read: CBSE schools to renew demand for representation in CBSE Board

Thursday, April 27, 2017
SANSKRIT ELECTIVE
BENGALI
TELUGU
MARATHI
ARABIC
FRENCH
TELUGU-TELANGANA
MIZO
SANSKRIT CORE
UNDERSTANDING THE EVOLUTION AND FORMS OF MASS MEDIA-II
AUTO ENGINEERING-II(NSQF)

Friday, April 28, 2017
NATIONAL CADET CORPS(NCC)
MULTIMEDIA & WEB TECHNOLOGY
AUTOSHOP REPAIR & PRACTICE-II NSQF
FABRIC STUDY
TYPOGRAPHY & COMPUTER APPLICATION(HINDI)

Saturday, April 29, 2017
PHILOSOPHY
ENTERPRENEURSHIP
OFFICE PROCEDURE & PRACTICES
BASIC CONCEPT OF HEALTH AND DISEASE AND MEDICAL TERMINOLOGY
FOOD SERVICE-II
GEOSPATIAL TECHNOLOGY
MIDWIFERY

Economics of Subsidies

We have been taught by capitalistic economic system that subsidy is bad for business and it is anti growth. As followers of capitalistic economic system World Bank, IMF and all economists related to the economist circle of Capitalism, agree on this. Ask any noble laureate economist except deviated characters like Joseph Stieglitz about this, they will tell you mostly about the demerits of subsidies. Of course a person like Piketty has the guts to challenge this theorization of anti subsidy ideas. Any one with fair knowledge of development economics agree that the huge inequality prevailing across the globe is obnoxious. For saying this, we do not need to quote Kaushik Basu, the Chief Economist of Wold Bank. The requirements for different states vary from each other and cannot be standardized. A big country like India with mention of socialism in its preamble can try to follow path of American capitalism but may achieve limited success. Further, the question comes on the huge subsidy provided by big multinational corporations like Uber or multinational funded venture Ola. From where does the money come? These are primarily the marketing expenses during the break even period of the business.  Is it not subsidizing prices? Can we not consider this as dumping? The only difference is; these subsidies are for capturing market and expansion of business while state subsidies are for alleviating poverty and expansion of purchasing power. The huge discount provided by brands like Pantaloons or Marks and Spencer are sometimes due to distress selling. That is again bad for companies business as well as wardrobe of customers. We end up buying something which we never required. If minimalism is becoming trendy then the future of these subsidized pricing, dumping or distress selling will also be under threat. The future is unknown but for sure the world will come out as a better living space for us under Trump, Modi or multilateral leadership of Ban Ki-Moon.   

Pablo Neruda

Pablo Neruda is a widely used name in Bengali literature. It is often used and abused and represent the intellect of typical Bengali literature enthusiasts. This Chilean writer was bestowed noble prize for literature. English translation of Pablo Neruda is mesmerizing. The enigma created by him makes you travel between 'the shadow and the soul'. Pablo writes his unforgettable piece:

If you forget me

I want you to know
one thing. 

You know how this is: 
if I look 
at the crystal moon, at the red branch 
of the slow autumn at my window, 
if I touch 
near the fire 
the impalpable ash 
or the wrinkled body of the log, 
everything carries me to you, 
as if everything that exists, 
aromas, light, metals, 
were little boats 
that sail 
toward those isles of yours that wait for me. 

Well, now, 
if little by little you stop loving me 
I shall stop loving you little by little. 

If suddenly 
you forget me 
do not look for me, 
for I shall already have forgotten you. 

If you think it long and mad, 
the wind of banners 
that passes through my life, 
and you decide 
to leave me at the shore 
of the heart where I have roots, 
remember 
that on that day, 
at that hour, 
I shall lift my arms 
and my roots will set off 
to seek another land. 

But 
if each day, 
each hour, 
you feel that you are destined for me 
with implacable sweetness, 
if each day a flower 
climbs up to your lips to seek me, 
ah my love, ah my own, 
in me all that fire is repeated, 
in me nothing is extinguished or forgotten, 
my love feeds on your love, beloved, 
and as long as you live it will be in your arms 
without leaving mine. 

The Violin Player

The Violin Player; directed by Bauddhayan Mukherjee is not exactly music into the years or mind of the viewers! It takes you through the cruelty of life. A musician achieves his ultimate at the cost of loosing his world. But still it makes him happy and contended. The film was screened recently in the Habitat film festival and the director and producer were present for a Question and Answer session. There were brilliant acting, good music and of course a lateral plot which always may not sync with our world of commercial entertainment. The low budget movie can be inspirational for many budding film makers. The effort of the director in making a good movie will be appreciated by most film lovers.

The 72 minutes movie shows the life of a not so successful violin player who was finding it difficult to meet his both ends in the city of Mumbai. Suddenly he comes across an opportunity of playing a solo. But does it fulfill his objective? Can it be taken as an achievement? Is it the birth or death of an artiste? Many questions remain though the film ends without much ambiguity about the thoughts of the director. 

There may be some irrationality in certain scenes and one or two sequences may appear a bit lengthy but finally the entire movie is threaded through the violin without any loose string. We expect more and more beautiful creations from the director in future.  

Hunger

There is enough food in the world. People try hard to shade off the extra calorie in their body, A massive world population suffer from obesity. Health drinks, junk foods and Quick Service Restaurants are popular  in most of the urban places. Still in this opulent environment, you are compelled to see many hungry faces. Malnourished, underfed children show that civilization has not reached a stage where it can at least feed its members. Why so many people go hungry when there is no dearth of food in the world? Is it not lack of civility? Is it not the callous attitude of ours? Is it not the dirtiest example of selfishness? Malnutrition reduces the learning capability of children and their future productivity. Can we see the world free from hunger in the immediate future? The answer is a big NO. As per World Bank, we will require producing 50 % more food to feed the entire World population by 2050. There are challenges of climate changes cutting down our crop yield. There are schemes like mid day meal scheme in India which is an attempt to provide at least one meal to our children. Let's work towards making the world free from hunger. There are approximately 795 million people who do not have adequate food. More over enough is always not the answer to the right food which provide adequate nutrition. !165 million children under the age of 5 are stunted due to lack of nutrition. $ 1 spent on reduction of stunting gives us a return of $ 18. Economies world wide need to work towards providing nutrition and healthcare to the children for reducing stunted children across the world. The first 1000 days from the birth is most important for a child's development. Let's ensure that no pregnant women or children go hungry in the world. Let's come out from the vicious circle of poverty.  

Let Delhi Breathe!

I have traveled to the capital of independent India innumerable times since my childhood. I love Delhi. I got an opportunity to work in Delhi last year. It is an awesome experience to be in Delhi for more than a year now. Different cities wear different looks during different seasons. Delhi is at its best during winter. Delhi's fashion is great, Delhi’s roads are great, Delhi with the patronage of Government of India is no doubt the one of the best cities to live in with various amenities including public spaces like parks, gardens and auditorium.

You need luck to enjoy a sunny Sunday in December as Delhites got on the second Sunday of the month. A metro ride from Green Park to Rajiv Chowk took me less than 20 minutes. After spending some time in Jain Book Centre, I felt like going to Daryaganj old book market. I had not been  there earlier. While travelling from Canaught Place to Daryaganj again had the feeling which I am sure about Delhi now. I do not have statistics with me but almost convinced that Delhi is the most unequal amongst the metros in India. Due to heavy rate of migration from different states of India, particularly BIMARU states, Delhi can afford ' naukar' culture very much. For ironing a shirt in Delhi's posh Uday Park, I pay Rs 4! How is the rate in Chennai or Mumbai? I guess even poor Kolkata is not cheaper! For a rikshaw ride from Daryaganj to New Delhi metro station, I had to pay Rs 20, very similar to poor Kolkata or even less. Power brokers in the country have ensured that unorganized labourers are available in serving their masters in the capital of largest democracy of the world.

Delhi has problems of pollution, problems of crime but still any one will love the beautiful greeneries of Delhi. One of the greenest city in the country is Delhi.You may come across parrots often and occasionally a peacock as well. We know Delhi's pollution level higher than any acceptable norms. A recently elected AAM AADMI Chief Minister of Delhi is trying to control the situation with his educated brain but limited powers ( muscle power as well as constitutional power). Let's pray, let Delhi breath. Let Delhi continue welcome the parrots as well as immigrants from different parts of the country!

Goonj- rays of hope

First I got to know the name of Goonj few years back when they collaborated with Pantaloon for collecting old clothing. They have been active in different parts of the country. It was great to know that Goonj founder was awarded Magsaysay for the year 2015. This would definitely boost morale of different people in various parts of the world trying to act differently for the less privileged sections of the society.

It was an experience recently to interact with the Goonj founder and listen to him. The simple man speaks with lots of conviction and confidence. A brilliant student who completed his post graduation from country's premier institute Indian Institute of Mass Communication  chose to ignore the calls from corporate sector for the sake of call from his heart.

Goonj has been successful in recycling the extra clothes in our wardrobe for the people who need it. Mr. Anshu Gupta rightly says that you cannot use the word 'donation' for sharing your old clothes but even if people do that, dignity of many can be maintained, Your old cloth can not only provide warmth to the needy people but also can save lives during winter. Goonj has also been successful in making and distributing sanitary napkins to rural women through waste clothes. 

If we have more and more people like Anshu Gupta, the face of the needy and poor in this country will lighten up.

Celebration of death

Two persons accused of mass killing in Bangladesh have been killed by the state. There are celebration across the country in the midst of protest from the opposition. I do not doubt the judgment. I do not have anything to justify the heinous crime committed by these two people . But I doubt if there is anything to celebrate death of anyone. The persons accused of the crimes, were committed 45 years ago. Are the persons killed today and the criminals who were behind the crimes are one and the same persons.  Every cell of their human body has changed over this long period. They have gone through the biological process of living on this earth for 45 years. Their environment, perspective, ability all are changed. And why should I consider this as vindication of right of the people who went through the sufferings for the Bangladesh's war of independence. What are they going to gain out of these killings. These killings may rather provoke few more to aim an eye for an eye. We condemn the act of terrorism , we condemn murder committed by criminals, why should we support killing by the state. Today, most of the civilized countries have abandoned death penalty. There are few exceptions like, India, Pakistan and Bangladesh. This is high time for us to come out from the uncivilized mind set of revenge. Let's abandon state and society sponsored killings of human life.

Globe Trotter Prime Minister

India had in its history vocal PM, Simple PM. Lady PM. Loving PM, lunatic PM, learned PM, Muted PM and now turn for a Globe trotter PM. The full time occupation of the current prime minister is travelling across the world and he does it so passionately that Government of India spends 300 Crore for his UK speech. The twitter trend shows#Pime ministerinMalaysia. Supposedly he is bringing Global Business leaders to India to create industrialization. We also hear that he has started the second phase of liberalization. Travelling is a good hobby, PM can think about writing reviews for the travel sites, this will also definitely increase tourism business for India. His certificates matter as he is a true globe trotter with multi country exposure! 

A typical day!

The pictures are clicked in three cities across India depicting three different times of the day. Author usually shuttles between these cities and mostly based in New Delhi, India.

Start of the day

Mid day

A cool evening 

Know the author

Some lovely time I recently spent with my younger son! This pic and video will introduce you to me and my family better.

Know the author better

Pricing Management and CRM in Telecom Industry

When the telecom minister spends months in Tihar Jail, you expect very little from the same sector. India’s fastest rising Industry is seeing painful death. The death is experienced by crores of Indian consumers and not only by few big conglomerates. Before the sector reached its maturity, it saw its decline defying the basics of product life cycle.

Telecom is a service. The institutional mechanism is ensured by Telecom Regulatory Authority of India. Surprisingly, we have seen very little intervention from TRAI at any point of time. Only thing they could gift Indian consumers were Mobile Number Portability. Within the same country, we need to pay for roaming when we move to another circle. In spite of numerous assurances in the last few years till we have not got free national roaming. If you change telecom circle in India, you need to change your number or get penalised. We are given an expected date of April, 2015 when national roaming will be free. But we have earlier also read about similar dates. Luckily there is no concept of roaming in case of data.

We hear that telecom companies are unable to make much profit in voice calls but there are huge opportunities in data. There are different types of data services; 2G, 3G, 4 G. We may expect soon HaG and NaG too.

What is appalling in this sector is the deterioration of Customer Relationship Management. If you are unable to speak or understand Hindi, don’t expect call centre service in Northern part of India. If you are in Bengal, you need to speak Bengali to get customer support. If you send e-mail, they will revert on phone. If you send some query which is difficult for them, they will send you Cut Copy Past answers and within few minutes you will receive another mail that your complaint have been closed and there will be some survey questions to check your satisfaction level.

Let me share one of my recent experiences. I was given 3G data service by Airtel. The rate decided was Rs 100 for 250 MB. Once this data is exhausted automatically same scheme used to be repeated. Suddenly they changed my data plan and tried to extort Rs 1000 for 250 MB. The price jumps by 10 times without even an intimation to me. I am sure the people who work in the Pricing and Revenue department of these telecom companies are decently educated but they should not consider all their customers illiterates to fall in their trap. And I have been with this service provider for years. I was so sure that they were the most reliable telecom brand in India that I had even bought few shares of the company with my hard earned money. I do not know who heads the customer service in Airtel. I know customers are not allowed to enter Airtel office and they maintain tight security, probably the reason being they have huge numbers of unhappy customers. I don’t believe that other companies will be any better. Basic of pricing technique teaches one to go for efficient pricing but not adopting unethical means. This article with ‘Gyan’ will probably not help anyone. India’s Telecom Minister sports a very strong personality on Television but it’s not his cup of tea to bring out this sector from the present mess. TRAI will never try to work on the plight of ordinary customers. But this write up straight from the heart of an aggrieved customer will at least give the satisfaction that web space could be used to vent the anger and express dissatisfaction. If you have similar experience with any Telecom Service Provides at any part of the world, please express your plight. Even if they do not hear, let’s speak!!!!!!!!

Punishment in an Engineering School!

“Then what happens in Army? I want to know what happens in Army. Are they not given punishment?” He rotated his chair 30 degree and asked his deputy and a fellow faculty, “what do you suggest, monetary punishment or physical?” The Assistant Dean was feeling great, he felt like a hero. It was impossible to identify the real culprit in a campus of 3000 odd students. But he had caught the security guards off guard for neglecting in their duty. Assistant Dean, an aspirant of the vacant post of Dean gave his verdict, “a student who could draw specs on the face of Newton, can do murder his science teacher”. And with sadness in his voice he commented further “this mishap could be avoided if those guards were more vigilant”. The other faculty was not sure whether the student who of course did a mischief was seriously capable of killing his teacher; he cleared his throat and said ‘let me call Colonel’. Everybody agreed. Director shouted ‘why Colonel is not there? Where is the campus security in charge?’

Colonel was a retired engineer from Army. Looks like the next door grandpa. His toothless face makes him look even older. He has been appointed Campus Administrator because of his Colonel tag. He was not in the campus the previous day due to loose stomach. Colonel enters the scene with his security in charge. Unanimously it was agreed that on humanitarian ground the poor security guards should not be fined. They will have to run from the main gate to the canteen and back in the scorching Sun of May. It was just about 5 Kilometres. Someone, probably the security in charge murmured once that some of the guards were heart patients. In the chaos Director heard ‘heart patients’ as ‘ hat be’( they would walk). He said with a dictatorial voice ‘keu hatbe na’ ( no one will walk). “They will complete the run in ten minutes. I will count in my watch.”

Suddenly there were two calls one after the other in the Directors landline and mobile. Director said in his mobile “Union problem? Okay! I see, I will look for alternatives to punish those idiots”. While attending the other call, the 64 years old Director was perspiring a lot but with an authoritative tone he ordered all in the room “Let’s rush to the department, students are threatening to boycott class, can you imagine the audacity?”

Pricing technique during rising prices

Pricing technique during rising prices

By

Amlan Ray; Dean, IIPM- Kolkata,

AQ-6, Sector V, Salt Lake, Kolkata- 700091

E mail: amlanray1@gmail.com

                       

Pricing technique during rising prices

Key words: Pricing, elasticity, inflation, cost

Abstract

Pricing is the key factor in marketing mix. The revenue of a firm is dependent on correct pricing. Pricing decisions become more complex in an inflationary situation. The rising input cost put pressure on marketing manager. Passing the input cost to the consumer may bring down the total sales, resulting in declining revenue. The price elasticity of a product and the income elasticity of the consumers are final determinant of the sales quantity. Marketers are always in search for the optimum price and quantity which can maximize the firm’s revenue. In our study, we have tried to understand which groups of commodities are affected more due to inflationary condition. We have analyzed the secondary data of different product group’s sales in the current inflationary situation in India. We have also made an attempt to understand the buying behavior of a homogeneous group in case of price increase. Our study establishes that while price has adverse effect on sales, non price factors like competition, macroeconomic environment play crucial role in the sales quantity of a commodity. It is also found that mostly people try to adhere to their original buying behavior. The consumers always want to stick to their own taste and preference. This urge of maintaining same lifestyle compels the consumers to raise their willingness to pay.

1. Introduction

When you get an increment of 10%, you are not very happy as the extra income does not bring you any material comfort; it gets vanished chasing the new prices in the market. When bank gives 10 % interest to a retired person, he is still not able to maintain his life style; again the culprit is the price rise. When nominal income rises, we are not sure about the real income, maybe it is falling. In a falling income state, how do the consumers behave? Does their consumption pattern follow a typical Engel’s curve? What strategy should a marketer take to maintain his top line unaffected from the clutch of falling demand? Even if he is able to maintain the top line, will the bottom line be unaffected? Who will bear the cost of rising interest or the increased input cost?

Out of the marketing variables, pricing is that component of the marketing mix which directly determines the firm’s revenue. In an inflationary situation, pricing decisions are even more important as the cost curve of the firm heads northwards.

Our basic question is during the inflationary situation how the buying behavior of the buyers is affected?

In case of inflation, the real income of the consumer may go down. It’s a possibility but not a necessity. In most of the countries, we find that there is GDP growth in spite of inflation. So, aggregate real incomes of the people are not reducing. But it is very much possible that certain sections of the people are having reduced income. In case certain sections of the population are having reduced income and a company targets the same segment then the company’s top line might be affected.

2. Literature Review

John Quelch ( 2008) questions ‘ How can marketers cope not just with inflation but with consumer sticker shock?’In his 7 point advice to marketers, he stresses on investment on market research to understand the attitudes and behavior in response to price inflation. Quelch further says that clearly all marketers are not equally affected by inflation and luxury brands do well regardless of price. Increasing relevance and redefining value are important marketing strategy during price rise.

David B Ridley (2011) writes that inflation regulation can have the launch price decrease and profit and efficiency increase. Rising price indicate consumers’ increased willingness to pay and it happens due to rational addiction or adoption and switching costs.

As per Mckinsey researchers (Eyink, Marn, Moss; 2008) Price sensitivity research and Market price tests need to be rerun in case of down turn in the market. Unsold stock, reduced demand, excess capacity and extra price sensitiveness of consumers make it more challenging for the marketers to set price. Studying industry micro economics becomes utmost important in this situation. Similarly in inflationary situation, the consumers perceive reduced income and firms face increased price pressure which make it difficult for the corporations to set correct prices.

Ogbuechi (2011) writes that countries with high inflation rate pose a different pricing challenge to the marketing manager than do countries with moderate inflation. Pricing involves many factors like competition, market demand, government regulations. These factors become compounded in a high inflation market. Firms need to understand these factors before price setting.

2.1 Pricing technique in different phase of product life cycle

Apart from the economic condition, the pricing techniques are very much depended on the product’s phase in the PLC curve. The marketer still can get a higher price in case of a unique product during its launch but this advantage will wane away faster during inflationary condition or downturn.

2.2  Revolutionary, Evolutionary or Me too

In launch stage a product can be Revolutionary. It can set its own price. It might be new concept or the usages were unknown earlier. Over a period of time, the product needs to be evolutionary, wherein suppliers bundle more benefit or offers extra to retain market share. When, there is entry of more competitors, the product might become me too and the company does not gain by differential pricing. Customers become extremely price sensitive and price elasticity may cross 1. Here is the challenge in front of the marketer to keep the product floating in the market.

2.3 Gosling effect; does it work during inflation?:  Dan ariely in his experiment with MIT students have shown how the initial pricing bears a lingering effect in the consumers mind. If we know a cup of coffee at Barista will cost us Rs 100, we are prepared to pay that but our canteen coffee cup price is expected to be Rs 10 even for an equally good offering. Dan has explained it through the concept of arbitrary coherence. “The basic idea of arbitrary coherence is this: although prices are “arbitrary”, once those prices are established in our minds they will shape not only present prices but also future prices (this makes them “coherent”). Now will Gosling effect hold true in an inflationary situation?

3. Pricing techniques

Marketers can set the prices during inflationary situation, depending on the consumers buying behavior. In today’s market place due to cut throat competition, there is very slim chance of adhering to cost plus pricing. The possibility of pricing technique of marketers remains confined within the spheres of value based pricing depending on the offers or Competition based pricing.

3.1 Cost Based pricing: In case of cost based pricing, the entire focus of the company is on the cost incurred in manufacturing and delivering the product. Here the price elasticity or income elasticity is not given importance. The prices are based on the company’s perception about product’s value and not the consumer’s perception of the value of the product.

3.2 Market based pricing: Here cost of the product is not the main determinant. Product prices are set on the basis of the price customers are willing to pay. The seller needs information on the price elasticity on product segment and market segment.

4. Objective

Our basic research question is ‘During inflationary situation how the buying behavior of the consumers is affected?’

Objective of this study is to understand buying behavior of people during inflationary situation and to recommend a pricing technique which will help the marketers. We will try to find out:

1. During price rise, which group of commodities sales are worst hit?
2. Does the buying behavior follow Engel’s curve in real life?

5. Methodology

In our study, we have detailed secondary research and review of the existing work on pricing and inflation.

If the real income of the people goes up, then as per Engel’s curve, normal goods consumption will rise proportionately. Essential consumer goods will have less elasticity and luxury goods will have more demand. If we believe that in today’s market, Engel’s curve is applicable, then Luxury goods market should be affected the most in case of inflation.

Here our null hypothesis is H₀                                         

= In inflationary situation the consumer goods follow perfectly Engel’s curve

Apart from secondary research, we conducted a study of buying behavior on a controlled group of respondents.

1) The group is given a budget of rupees ten thousand to spend on a large number of goods.

2) Next, we increased the price of all the goods in the range of 40 to 50 percents and asked the respondents to start buying again.

This way a simulated buying behavior data is collected.

The sample size is 50

We have measured correlation between the initial data and post price increase data.

6. Findings:

Let’s follow the following times of India report dated 13^th July, 2011 titled ‘Inflation, rates hit consumer demand’. We find in the article following table:

Table 1

Top Losers Products	% Decrease in productions Apr- May’ 2011	Mighty Losers Products	% Decrease in productions Apr- May’2011
Cement Machinery	78.59	Cements All kinds	1.7
Colour TV picture tubes	50.49	Colour TV sets	9.78
Battery charger	60.34	Cigarettes	4.42
Polythene bags	45.01	Gems and Jewellery	8.05
Squash, jams, jellies, ketchup etc.	40.48	Milk	0.97

Source: Govt. data

Here we can see that the industrial products are cutting down the production on the basis of negative forecasting of market demand. We find decrease in the production of the different consumers’ goods as well. Gems and Jewellery being in the luxury segment is hit 8.05 percent, milk being an essential consumer goods, its demand has gone down only by 1 percent. Colour TV sets demand is hit but we know that there is no substantial increase in the price of the white goods segment in recent past. So, probably, this is more due the income elasticity than price elasticity which has impacted the colour TV sets demand. Squash, jams, jellies, ketchup being the luxury amongst the food items, its sales are more affected due to inflation. The report studied 270 items that account for over 45% of the index of industrial production (IIP). It has shown that products ranging from apparel, cigarettes, milk, televisions sets are all at the top of the list of the losers during April to March.

We find following information about sales of Maruti Cars from their website.

The comparative sales figures till September for both 2012-13 and 2011-12 are given below:

Table 2.

Segment Models Till September 2012-13 2011-12 % Change  A: Passenger cars : Mini M800, Alto, A-Star, WagonR 185023 234900 -21.2% A: Passenger cars : Compact Swift, Estilo, Ritz 112617 100515 12.0% A: Passenger cars : Super Compact DZire 73150 45383 61.2% A: Passenger cars : Mid-Size SX4 2861 9909 -71.1% A: Passenger cars : Executive Kizashi 35 171 -79.5% TOTAL A: PASSENGER CARS 373686 390878 -4.4% B: Utility Vehicles Gypsy, Grand Vitara, Ertiga* 40366 3846 3846 C: Vans Omni, Eeco 59166 78365 -24.5% Total Domestic Sales 473218 473089 0.0% Total Export Sales 53054 60744 -12.7% Total Sales (Domestic + Export) 526272 533833 -1.4%

* Ertiga launched in April 2012.

We study the above figures in the context of inflationary situation in the country. We have considered that real incomes of the people are falling. The Maruti products have become more expensive due to the dual effect of absolute price rise as well as interest rate increase during the above time period. When we closely follow the sales figure of Maruti Suzuki, the top most automobile manufacturer of the country, we find their sales dropped by 71 percent in the sedan segment SX-4, whereas in case of small cars, it was dropped by 21 percent. But how do we explain the 61.2 percent rise in the Swift Dzire? Probably in the sedan segment, Dzire is not a luxury product but more of a comfort. That explains the rise in Dzire sales and fall in SX-4.

6.1 Primary Research:

We had 50 respondents for a simulated buying exercise. Goods were classified into four sections namely Food items, clothing, gadgets and household goods. There were total 64 items randomly selected. We have collected data of sales at original price and post price increase. We find the following correlation between sales in original price and at increased prices for respective sections:

Food: 0.861279

Clothing: 0.878807

Gadgets: 0.87947

Household: 0.70456

Combining all the sectors, the overall correlation is 0.843755

We have further compared sales with respect to price. We have taken the 13 highest priced items in one group and 13 lowest prices goods in another group. Post price increase, the sales have gone down in higher priced item in the ratio of 9/4, in lowest priced items in the ratio of 8/5.

The strong correlation in sales figures of two data sets shows that buyers are more dictated by their taste, preference, choice rather than price. When we compare the sales data of highest priced products and lowest priced products, we do not observe any significant difference.

7. Managerial implications:

First step in the pricing technique should be classifying the products into normal, essential or luxury group. Next, we require measuring the consumer’s income elasticity. Considering the price elasticity of the product and income elasticity of the target segment, we require determining the price.

P = f ( Ep, Ey, y)

Where P = price, Ep = price elasticity of the product and Ey= Income elasticity of the product) and y = real income of the consumer.

While pricing is a function of multiple variables, the revenue is determined as a net product of price and quantity. Keeping this in mind marketers require to set his target price and target quantity of a product. Target segment is again one of the crucial determinants. Income elasticity of the consumers will set the consumers budget. If the marketer can predict these two fundamental micro economics variables correctly, the challenges before the marketers during inflationary condition become much simpler.

8. Future scope/Limitations

Our primary data is limited within city of Kolkata and may not be able to catch the buying behavior at different corners of the country. The respondent group is homogeneous upper middle class youth. The buying behavior of this segment may have no relevance in case of rural consumers with different buying patterns. Future studies can focus on these areas.

We have considered the case of Maruti Cars to assess the price sensitivity. Apart from price, there may be effect of other factors influencing the sales of Maruti car. Competition and prevailing interest rate play large role in determining automobile sales. Future studies can find out the extent of these factors and assess price sensitivities after discounting these.

Times of India report has most relevant contemporary data covering 270 items but the report has mentioned only 5 consumer goods, rest all are industrial products. Effect of price rise on industrial products and consumers products are expected to be different. A more detail study of consumer goods can give us even a clearer picture.

9. Conclusion

Price is one of the key determinants of demand. The effect of price depends on the income of the target segment and product type. There can be different pricing strategies to combat the effect of inflation. Feedback from the consumer through proper market research is key in decision making. The marketers need to reach to the optimum quantity with optimum price to achieve maximum revenue. Effect of price will depend on the category of product, its usage and more importantly the target segment. Macroeconomic environment will also play a major role in this. In case of consumer durable interest rate may be a key point. Other macroeconomic factors like change in income level, unemployment are equally crucial.

Spotting the target market correctly and finding out their income elasticity in inflationary situation is critical. In case of a homogeneous group the variation in sales is expected to be less in spite of change in price. The consumer may stick to the product set if the perceived value is high for him and if he is able to afford his taste and preference. Depending on the product and target segment, the market can take the right pricing decision.

 Our primary data shows that there is strong correlation between the buying preference of the consumers before and after increase of price. We find price will have a bearing on the sales but still consumers try to adhere to their own taste and preference. While in macro level the products may follow typical Engel’s curve, in micro level for a homogenous group, it may not work. Perceived value of a product can increase the consumers’ willingness to pay for it.  We may conclude that for an established brand targeting a particular segment, price increase in an inflationary situation is viable in spite of challenges particularly when the competitors are also forced to increase price.

Reference

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(http://articles.timesofindia.indiatimes.com/2011-07-13/india- business/29768567_1_cement-   production-iip-data-consumer-goods)

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