3rd Sept 2024 Shift 2:
| Examination: | UGC NET |
| Subject: | COMMERCE (Paper 2) |
| Exam cycle: | 3rd Sept 2024 Shift 2 |
| Types of Paper: | PYQ’s (Previous Year Questions) |
| Which Unit? | Unit 8 Marketing Management |
Question No.1
Match the List-I with List-II
| LIST I | LIST II | ||
| A | Personal selling | I. | Commercially significant news |
| B | Advertising | II. | Advertising within buses, railway compartments |
| C | Transit advertising | III. | Non-personal communication |
| D | Publicity | IV. | Two way communication |
Choose the correct answer from the options given below:
- A-I, B-II, C-III, D-IV
- A-II, B-III, C-IV, D-I
- A-I, B-III, C-II, D-IV
- A-IV, B-III, C-II, D-I
Solutions:
The correct answer is ‘A-IV, B-III, C-II, D-I’.
Key Points
● Personal selling (A) matches with Two way communication (IV).
o Explanation: Personal selling involves direct interaction between the salesperson and the customer, allowing for immediate feedback and adjustment of the sales approach. This two-way communication helps in understanding customer needs and building relationships.
o Personal selling is often used in complex or high-value transactions where personalized attention can significantly impact the buying decision.
o Key Point: Effective personal selling can lead to higher customer satisfaction and loyalty due to the personalized service provided.
● Advertising (B) matches with Non-personal communication (III).
o Explanation: Advertising is a form of communication that is directed at a large audience through various media channels such as television, radio, print, and online platforms. It does not involve personal interaction with customers.
o The goal of advertising is to create awareness, generate interest, and persuade potential customers to take action, such as making a purchase.
o Key Point: Advertising can reach a wide audience and is effective for brand building and creating market presence.
● Transit advertising (C) matches with Advertising within buses, railway compartments (II).
o Explanation: Transit advertising involves placing ads in or on public transportation vehicles and in transit stations. This type of advertising reaches commuters and travelers who use these modes of transportation.
o It is an effective way to target a captive audience with repeated exposure to the ads during their daily commutes.
o Key Point: Transit advertising can be a cost-effective way to reach a large and diverse audience.
● Publicity (D) matches with Commercially significant news (I).
o Explanation: Publicity refers to the free dissemination of information about a company, product, or service through media coverage. This can include news articles, press releases, and media interviews.
o Publicity can enhance a company’s image and credibility, as it is perceived as more trustworthy than paid advertising.
o Key Point: Positive publicity can generate significant interest and attention without the costs associated with traditional advertising.
Question No.2
Match the List-I with List-II
| LIST I | LIST II | ||
| A | Buyer’s Mind | I. | Members of Social-club |
| B | Personal Factor | II. | Motivation |
| C | Psychological Factor | III. | Life Style |
| D | Reference Group | IV. | Black Box |
Choose the correct answer from the options given below:
- A-I, B-II, C-III, D-IV
- A-II, B-III, C-IV, D-I
- A-III, B-IV, C-I, D-II
- A-IV, B-III, C-II, D-I
Solutions:
The correct answer is ‘A-IV, B-III, C-II, D-I’.
Key Points
● Buyer’s Mind (A) matches with Black Box (IV).
o Explanation: The ‘Black Box’ model refers to understanding the internal thought processes (mind) of the buyer, which are not directly observable. It focuses on how various factors influence the buyer’s decision-making process.
o Understanding the buyer’s mind is crucial for developing effective marketing strategies, as it helps predict consumer behavior and preferences.
o Key Point: Marketers need to study buyer behavior intricately to tailor their approaches accordingly.
● Personal Factor (B) matches with Life Style (III).
o Explanation: Personal factors, including lifestyle, significantly influence a consumer’s purchasing behavior. Lifestyle encompasses activities, interests, and opinions that shape a person’s choices and preferences.
o For example, a health-conscious lifestyle may lead to the purchase of organic food products or gym memberships.
o Key Point: Companies should consider the diverse lifestyles of their target market to offer relevant products and services.
● Psychological Factor (C) matches with Motivation (II).
o Explanation: Psychological factors such as motivation drive consumer behavior. Motivation stems from the desire to fulfill needs and wants, influencing the decision-making process.
o For instance, the need for security may motivate a person to purchase insurance.
o Key Point: Understanding consumer motivation helps in creating marketing messages that resonate with the target audience.
● Reference Group (D) matches with Members of Social-club (I).
o Explanation: A reference group, such as members of a social club, impacts an individual’s attitudes, behavior, and purchasing decisions. These groups serve as a benchmark or standard for comparison.
o For example, a person might choose a specific brand of clothing because it is popular among their social club members.
o Key Point: Marketers leverage reference groups to influence potential customers by showcasing their products as popular or endorsed by such groups.
Question No.3
Which of the following are the price-adaption strategies?
A. Price discounts and allowances
B. Target return pricing
C. Geographical pricing
D. Differentiated pricing
E. Going rate pricing
Choose the correct answer from the options given below:
- A, C & E Only
- B, C & D Only
- A, C & D Only
- A, B & D Only
Solutions:
The correct answer is A, C & D Only.
Key Points
Let’s analyze each strategy:
● Price discounts and allowances
o Price discounts and allowances refer to reductions in price to reward customers for certain behaviors such as early payment, bulk purchases, or off-season buying.
o Reason for inclusion: These are direct methods of adapting prices to encourage specific customer actions and enhance sales.
● Target return pricing
o Target return pricing focuses on setting prices to achieve a specific return on investment (ROI) or profit margin.
o Reason for exclusion: This strategy is more about setting initial prices based on financial goals rather than adapting prices in response to market conditions or customer behaviors.
● Geographical pricing
o Geographical pricing involves setting different prices for the same product in different geographic areas, considering factors like local demand, cost variations, and competition.
o Reason for inclusion: This strategy adapts prices based on geographical differences, making it a price-adaption method.
● Differentiated pricing
o Differentiated pricing, also known as price discrimination, involves setting different prices for different customer segments based on their willingness to pay, purchasing power, or other criteria.
o Reason for inclusion: This is a classic example of price adaptation where prices are adjusted to cater to different market segments.
● Going rate pricing
o Going rate pricing involves setting prices based on the prevailing market rate or the prices set by competitors.
o Reason for exclusion: While this method aligns prices with the market standard, it is not specifically about adapting prices to different conditions or customer behaviors but rather following the market trend.
Therefore, the strategies that fit as price-adaption methods are A: Price discounts and allowances, C: Geographical pricing, and D: Differentiated pricing. This makes option 3: “A, C & D Only” the correct choice.
Question No.4
Providing a total package of related goods and services to solve a customer’s needs is called:
- Complete Selling
- Conglomerate Selling
- Wholesale Selling
- Systems Selling
Solutions:
The correct answer is Systems Selling.
Key Points
● Systems Selling:
o Systems selling involves providing a comprehensive solution to the customer’s needs by offering a bundle of related goods and services.
o It is commonly used in industries where customers require a complete package rather than individual products, such as IT solutions, industrial equipment, and financial services.
o This approach ensures that all components work seamlessly together, providing greater value and efficiency to the customer.
o In a financial enterprise context, systems selling might involve offering a combination of financial products like loans, investment services, and insurance to meet a customer’s overall financial needs.
Additional Information
● Complete Selling:
o This term does not have a widely recognized definition in the context of sales and marketing.
o It might suggest selling all available products to a customer, but it lacks the strategic integration found in systems selling.
● Conglomerate Selling:
o This term typically refers to a large corporation that owns companies in diverse industries, not a sales strategy.
o It is not related to providing a comprehensive solution to a customer’s needs.
● Wholesale Selling:
o This involves selling goods in large quantities at lower prices, usually to retailers rather than end consumers.
o It does not focus on offering a comprehensive package of related goods and services.
Question No.5
An appeal that elaborate on a non-product related benefit or image and attempts to induce emotional responses from consumers is called:
- Physiological Appeals
- Informational Appeal
- Sociological Appeal
- Transformational Appeal
Solutions:
The correct answer is Transformational Appeal
Key Points
● Transformational Appeal:
o This type of appeal aims to create an emotional connection between the consumer and the brand. It focuses on non-product related benefits or the image of the brand, often portraying how the product can transform the consumer’s life.
o In a financial enterprise context, a transformational appeal might highlight how using a particular financial service can lead to a more prosperous and secure future, thereby evoking feelings of hope and security.
o For example, a bank might use transformational appeal in its advertising to show how its savings plans can help consumers achieve their dreams of buying a home or sending their children to college.
Additional Information
● Physiological Appeals:
o These appeals focus on basic human needs such as hunger, thirst, and comfort. They are not typically used in financial marketing as they do not align with the nature of financial products and services.
● Informational Appeal:
o This type of appeal provides factual information and rational arguments to persuade consumers. While this is useful in financial marketing to explain the benefits of a product or service, it does not focus on emotional responses.
● Sociological Appeal:
o These appeals relate to societal norms and values, often targeting social status or community belonging. While they can be effective, they are different from transformational appeals which focus more on personal transformation and emotional connection.
Question No.6
Nicosia Model of consumer behaviour is divided into four major fields, which of the following is the third field under this model?
- Feedback
- Act of purchase
- Firm’s and consumer’s attributes
- Search and evaluation
Solutions:
The correct answer is Act of purchase.
Key Points
● Act of purchase:
o The Nicosia Model of consumer behavior is a comprehensive framework that seeks to explain consumer decision-making processes.
o It is divided into four major fields: (1) Consumer attitudes based on firm’s messages, (2) Search and evaluation, (3) Act of purchase, and (4) Feedback.
o The third field, “Act of purchase,” focuses on the actual purchase decision process, including the selection of the product and the transaction itself.
o This field is crucial as it represents the culmination of the consumer’s search and evaluation phase, leading to the final decision to buy.
Additional Information
● Feedback:
o This is the fourth field in the Nicosia Model, not the third. It involves the post-purchase stage where the consumer evaluates their satisfaction with the product, which can influence future purchasing behavior.
● Firm’s and consumer’s attributes:
o This is not a distinct field within the Nicosia Model but rather elements that influence the first field. It encompasses the characteristics and attributes of both the firm and the consumer that impact the consumer’s attitudes and initial exposure to the firm’s messages.
● Search and evaluation:
o This is the second field in the Nicosia Model. It involves the consumer’s process of gathering information and evaluating different products or brands before making a purchase decision.
