PREVIOUS YEAR SOLVED PAPERS - UGC NET Management June 2019

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46. Which one of the following involves selling at a loss to gain access to a market and perhaps to drive competition?

  • Option : B
  • Explanation : Types of Dumpings: Different types of dumping are being practised by firms—sporadic, predatory, persistent, and reverse.
    Sporadic Dumping: This type of dumping occurs when a manufacturer with unsold inventories desires to get rid of distressed and excess merchandise. Goods are sold at any price that can be realised. The excess supply is dumped abroad in a market where the product is normally not sold.
    Predatory Dumping: This involves selling at a loss to gain access to a market and perhaps to drive out competition. Once the competition is destroyed or the market is established, the firm uses its monopoly position to increase price.
    Persistent Dumping: This involves selling at a lower price in one market than in others. Japan is able to keep prices high at home, especially for consumer electronics, because it has no foreign competition there. But it is more than willing to lower prices in the US market in order to gain or maintain market share. Japanese consumers, as a result, must sacrifice by paying higher prices for Japanese products that are priced much lower in other markets.
    Reverse Dumping: The three kinds of dumping discussed above have one characteristic in common: each involves charging lower prices abroad than at home. It is also possible to have the opposite tactic—reverse dumping. In order for this to happen, the overseas demand must be less elastic, and the market will tolerate a higher price. Any dumping will thus be done in the manufacturer’s home market by selling locally at a lower price.
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47. For a situation where 100 misprints are distributed randomly throughout the 100 pages of a book, the probability that a page selected at random will contain at most one misprint will be

  • Option : D
  • Explanation : The number of possible misprints on a page in the book is large, but the actual misprints are only 1 per page. This is analogous to a situation when n (number of trials) is very large but p (probability of success—error in this case) is very small, and, therefore, Poisson distribution is appropriate for this situation.
    Let the variable x be the number of misprints on a page. Then, the probability function of x is Poisson, given by:
    where m is the mean number of misprints per page which is equal to 1, in this case. Now the probability that a page will contain at most 1 misprint is given by:
    f(x  1) = f(x = 0) + f(x = 1)
    Thus, P(x  1) = 0.368 + 0.368 = 0.736
    Thus, the probability that the page will have at the most one misprint is 0.736.
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48. Which one of the follow ing demand forecasting methods is NOT a survey method?

  • Option : C
  • Explanation : Survey methods are the most common and simple methods of estimating current demand and projecting future demand for a product. Survey methods are generally used when the purpose is to make short-run forecast of demand for a product. Under survey methods, the required information is collected through a survey of consumers/users. The survey seeks information of consumers’ future plan to buy the product for which demand has to be forecast. Surveys are conducted by two methods.
    (i) Consumer Survey Method—the Direct Consumer Survey, and
    (ii) Opinion Poll Method
    The choice of any of these methods depends on the status of the availability of primary data and time and money that firms are willing to spend on the survey. If primary data on demand for a product is not available in any form and money and time are not constraints, then direct consumer survey is the only option. But, in case some relevant information is already available with experts and time and money are the constraints, the firms may go for opinion poll of experts. The process of co nducting these k inds of surv eys is discussed below.
    Consumer Survey Method—Direct Interview: Under this method, the potential consum ers of the product are directly interviewed to collect the required data on their demand for the product. Depending on purpose, time and cost, consumer surveys are conducted by three methods:
    (a) Complete enumeration,
    (b) Sample survey, and
    (c) End-use survey method.
    Opinion Poll Methods: The opinion poll methods aim at collecting opinions of those who are supposed to possess knowledge of the market, e.g., sales representatives, sales executives, professional marketing experts and consultants. The opinion poll methods include:
    (a) Expert-opinion method,
    (b) Delphi method, and
    (c) Market studies and experiments.
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49. As a newly appointed marketing manager of a firm, you have been asked to determine if a special Point-of-Purchase (POP) display causes the purchase of the product on display. What type of research design will be needed?

  • Option : C
  • Explanation : On the basis of objectives of the marketing research, the research can be classified into:
    (i) Exploratory research
    (ii) Conclusive research.
    On the basis of the character of data, MR is often classified into:
    (A) Quantitative research
    (B) Qualitative research.
    The research design for exploratory research is best characterized by its lack of structure and flexibility. It is generally used for the development of hypotheses regarding potential problems and opportunities. Exploratory research is further subdivided into (a) search of secondary data (b) case study (c) survey of experts. Conclusive research which is used to provide information for the evaluation of alternative courses of action can be sub-classified into (a ) descriptive research (b) causal or experimental research.
    Descriptive market research is used to describe marketing phenom en a while trying to determine the association among variables. It also seeks to predict future marketing phenomena.
    ln cross-sectional design, which is typically used in descriptive research projects, a sample of population elements is taken at one point of time. In descriptive research, we can make use of both a case study and statistical study. Causal or experimental research seeks to unearth cause and effect relationships. A good causal research design seeks to minimize the interference of external variables while studying the relationship between variables. There is, however, the third type of research, also termed as performance monitoring research, that is an important part of the marketing research activity of a firm. It typically requires a longitudinal research design (panel design), in which a fixed sample of population elements is measured repeatedly. In the traditional panel, the same variables are measured every time, as opposed to an omnibus panel where different variables are measured each time. In both types of panels, the sample of respondents remains fixed.
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50. When prices are rising, the LIFO produces

  • Option : A
  • Explanation : The following table compares the relative effects of using FIFO and LIFO cost assumptions on the statement of financial position and statement of income under differing economic conditions:
    Changes in Price levelsRelative effect on statement of financial positionRelative effect on statement of income
     FIFOLIFOFIFOLIFO
    Inflation (i.e., rising prices)Higher inventory carrying valueLower inventory carrying valueLower cost of sales; higher gross profit and net incomeHigher cost of sales; lower gross profit and net income
    Deflation (i.e., falling pricesLower inventory carrying valueHigher inventory carrying valueHigher cost of sales; lower gross profit and net incomeLower cost of sales; higher gross profit and net income
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