UGC NTA NET/JRF Exam, Management, June-2020

Total Questions: 100

21. What are the segmentation variables used to segment the market for toothpaste as a product?

(a) Demographic Segmentation Bases
(b) Psychological Segmentation Bases
(c) Behavioural Segmentation Bases
(d) Geographical Segmentation Bases

Correct Answer: (c) Behavioural Segmentation Bases

Solution:

Demographic, Psychographic, behavioural and geographic segmentation are considered the four main type of market segmentation, but there are also many other strategies you can use, Including numerous variations on the four main type.
Behavioural segmentation is the Basis for segmenting the marketing of toothpaste as a product.

22. The stages of a turnaround process are

(a) Realignment, Retrenchment, Recovery
(b) Realignment, Stabilize, Recovery
(c) Reassess, Stabilize, Survival
(d) Reassess, Retrenchment, Survival

Correct Answer: (a) Realignment, Retrenchment, Recovery

Solution:

Turnaround management is a process dedicated to corporate renewal. It uses analysis and planning to save troubled companies and return them to solvency, and to Indentify the reasons for failing performance in the market.
Stages of Turnaround-
Analysis and definition → Strategy development→ Action plan suitable development→ Implementation phase→ Evaluation.

23. In Porter's Generic Strategies Model, a focus strategy involves

(a) Selling a limited range of products.
(b) Selling to a narrow customers segment.
(c) Selling to one region only.
(d) Selling simple products that are cheap to produce.

Correct Answer: (b) Selling to a narrow customers segment.

Solution:

The focus starategy concentrates on a narrow and with in that segment attempts to achieve either a cost advantage or differentiation.

The differentiation focus strategy involves selling to a limited set of customers.

24. This system of distribution channel consists of producers, wholesalers and retailers acting as a unified system. One channel member owns the others, has contracts with them, or wields so much power that they must cooperate. Name this system of channel distribution

(a) Conventional distribution channel.
(b) Vertical marketing system (VMS).
(c) Consumer distribution system.
(d) National marketing distribution system.

Correct Answer: (b) Vertical marketing system (VMS).

Solution:

Vertical marketing system refers to the teamwork of the different members of any distribution channel. This can include producers, retailer and wholesalers. All of them need to work with another in order to successfully deliver products to consumer. The example of vertical marketing system is walmart.
Hence option (b) is correct answer.

25. Complex Buying Behaviour is characterised by

(a) Products are of low risk but the involvement level is high.
(b) When the level of involvement is high and the significant difference between brands is low.
(c) When the level of involvement is low and significant difference among brands is high.
(d) When the level of Involvement is high and significant difference among brands is high.

Correct Answer: (d) When the level of Involvement is high and significant difference among brands is high.

Solution:

Complex buying behaviour occurs when the consumer is highly involved with the purchase and when there are significant differences between brands. This behaviour can be associated with the purchase of new home or a personal computer option (d) is correct.

26. A Brand Extension Strategy refers to

(a) Extending existing brand names to new forms of an existing product category.
(b) Extending an existing brand name to a new or modified product in a new category.
(c) Coming out with different brands in a given product category.
(d) All the above

Correct Answer: (b) Extending an existing brand name to a new or modified product in a new category.

Solution:

A Brand extension is when a company uses one of its established brand names on a new product or new product category. It's sometimes known as brand stretching.
Some type of Brand extension-
• Product Extension.
• Line Extension.
• Customer Franchise extension.
• Brand distinction extension. P
• roduct range extension.
Hence, option (b) is correct answer.

27. Coke has started coke parlours- the Red Lounge- for tech crazy adolescents called experience outlet. What type of differentiation strategy can this be called?

(a) Differentiating the service utilizing Brand Image.
(b) Differentiating through People.
(c) Differentiating through Process.
(d) Differentiating through Physical Evidence.

Correct Answer: (d) Differentiating through Physical Evidence.

Solution:

Coca Cola set up Red Lounge. These would a one stop destination for the youth to hang out where they can surf the Internet, chat, watch TV on giant plasma screens and experience the entire portfolio of Coca Cola. Its strategy called Differentiating through physical evidence.

28. The CRM Strategy adopted by Big Bazar in India is all about

(a) Frequency Marketing Program.
(b) Club Membership Program.
(c) Structural Relationship Program.
(d) Experiential Relationship Program.

Correct Answer: (a) Frequency Marketing Program.

Solution:

Frequency marketing refers to a activities which encourage repeat purchasing through a formal program enrollment process to develop loyalty and commitment from the customer base. CRM strategy is a company wide plan for your business to grow revenues and profit. reduce cost and enhance Customer Relationship. Hence the CRM strategy adopted by Big Bazaar in India is a part of the frequency distribution programm.

29. Six Sigma level of Quality management results in

(a) 34 defects per one million.
(b) 3.4 defects per million.
(c) 3.0 defects per million.
(d) 3.2 defects per million.

Correct Answer: (b) 3.4 defects per million.

Solution:

Six Sigma is quality management methodology used to help businesses Improve current process, product or services by discovering and eliminating defects. A level of 6 Sigma represent a high level of quality with 3.4 deffect per million opportunities. It is this sigma level that leads to the term six sigma. Which is a philosophy of delivering near perfect product or services by eliminating variabilities that load to defect. Hence option (b) is correct.

30. Automobile Assembly or Manufacturing follows which one of the following types of layout?

(a) Process Layout
(b) Fixed-Position Layout
(c) Product Focused Layout
(d) Cellular Layout

Correct Answer: (c) Product Focused Layout

Solution:

Layout is master plan of the printed work that lays out the order of its various graphic elements. There are four basic layout types: Process, Product, hybrid and fixed position.
Product focused layout has a stracted arrangement of various machines concentrating on producing a single final product. So Automobile and manufacturing Industries use product-centred layout.