Avatto>>UGC NET Management>>PREVIOUS YEAR SOLVED PAPERS>>UGC NET Management July 2018

81. Which one of the following attributes of advertising regarding launching of a new product calls for spending all the advertising budget in a single period?

  • Option : C
  • Explanation : 1. Continuity scheduling spreads media spending evenly across months. For example, with an annual budget of Rs.12,00,000 a year, continuity scheduling would allocate exactly Rs.100,000 per month. This method is used in case of frequently purchased items like soaps and toothpastes, and ensures steady brand exposure over each purchase cycle for individual consumers. It also takes advantage of volume discounts in media buying. However, because continuity scheduling usually requires a large budget, it may not be practical for small advertisers.

    > Works as a reminder
    > Covers the entire purchase cycle
    > Cost efficiencies in the form of large media discounts.
    2. Concentration scheduling pattern calls for spending the entire amount available for advertising in a single period.
    3. Flighting: Advertising for some period followed by a hiatus with no ad and then followed by a second flight.
    4. Pulsing scheduling pattern combines the continuity and flighting scheduling methods, so that the brand maintains a low level of advertising across all months but spends more in selected months. For example, an airline like Kingfisher Airlines might use a low level of continuous advertising to maintain brand awareness among business travellers. Kingfisher Airlines might also have seasonal pulses to entice summer-weary consumers to fly to various places. In budget allocation terms, a consumer goods brand may, with a budget of Rs.12,00,000 a year, spend Rs.50,000 in each of the twelve months to maintain the brand awareness and spend an additional Rs.1,00,000 in January, March, May, July, September and November to attract brand switchers from competing brands. The pulse scheduling method takes advantage of both the continuity and flight scheduling methods and mitigates their weaknesses.
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83. In which one of the following types of store retailers, large, low-cost, low margin, high volume, self-service store attributes are designed to meet total needs for food and household products?

  • Option :
  • Explanation : Major Store Retailer Types
    Specialty Stores: Carry a narrow product line with a deep assortment, such as apparel stores, sporting-goods stores, furniture stores, florists, and bookstores. A clothing store would be a single-line store, a men’s clothing store would be a limited-line store and a men’s custom shirt the store would be a super-specialty store. Examples: The Body Shop, Gap, The Athlete’s Foot.
    Department Stores: Carry several product lines—typically clothing, home furnishings, and household goods—with each line operated as a separate department managed by specialist buyers or merchandisers. Examples: Sears, Macy’s, Marshall Field’s.
    Supermarkets: A relatively large, low-cost, low-margin, high-volume, self-service the operation designed to serve the consumer’s total needs for food and household products. Examples: Kroger, Vons, A&P, Food Lion.
    Convenience Stores: Relatively small stores located near residential areas, open long hours seven days a week, and carrying a limited line of high-turnover convenience products at slightly higher prices. Examples: 7-Eleven, Stop-N-Go, Circle K.
    Discount Stores: Carry standard merchandise sold at lower prices with lower margins and higher volumes. Examples: General–Wal- Mart, Target, Kmart, Specialty–Best Buy.
    Off-Price Retailers: Sell merchandise bought at less-than-regular wholesale prices and sold at less than retail; often leftover goods, overruns, and irregulars obtained at reduced prices from manufacturers or other retailers. These include factory outlets owned and operated by manufacturers (example: Mikasa); independent off-price retailers owned and run by entrepreneurs or by divisions of larger retail corporations (example: TJ Maxx); and warehouse (or wholesale) clubs selling a a limited selection of brand-name groceries, appliances, clothing, other goods at deep discounts to consumers who pay membership fees (examples: Costco, Sam’s, BJ’s Wholesale Club).
    Superstores: Very large stores traditionally aimed at meeting consumers’ total needs for routinely purchased food and non-food items. Includes category killers, which carry a deep assortment in a particular category and have a knowledgeable staff (examples: Best Buy, Petsmart, Staples); supercenters, combined supermarket and discount stores (examples: Wal-Mart Supercenters, SuperTarget, Super Kmart Center), and hypermarkets with up to 220,000 square feet of space combining supermarket, discount, and warehouse retailing (examples: Carrefour [France], Pyrca [Spain]).
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84. Match the items of List-II with the items of List-I and suggest the correct code:

List-I(Marketing and Business Practices)List-II (Meaning)
(a) Customer partnering(i) Working more closely with customers to add value to their operations.
(b) Uncovering(ii) Using data mining and other analytical methods to develop deep insights into customers and how they behave.
(c) Broadening(iii) Studying “best practice companies” to improve performance.
(d) Benchmarking(iv) Factoring the interests of customers, employees, shareholders, and other stakeholders into the activities of the enterprise.

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85. A firm earns a return on investment at the rate of 20%, earning per share is Rs.15, the payout ratio is 50%, cost of equity is 12%; the market price per share as per Walter’s model is:

  • Option : D
  • Explanation : Walter develops a model where the Market Price of a Share is expressed as follows:
    P = {D + A/P (E – D)}/P
    Where, D = the dividend per share
    E = the earning per share
    A = the return an investment
    P = the market capitalization rate
    Here, A = 20%
    P = 12%
    E = 15
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