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UGC (Marketing Elective)

Description: Practice test paper for UGC Paper 2 (MBA)
Number of Questions: 25
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Tags: UGC paper 2 CBSE (UGC) NET Marketing Fundamentals Product Management Marketing Strategies
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In which of the following phases of PLC does a firm selects a particular segment?

  1. Maturity phase

  2. Decline phase

  3. Introduction phase

  4. Growth phase


Correct Option: D
Explanation:

By the time a firm reaches growth phase  it has to select a segment, as only focused competitors emerge successfully. Hence, it is the right answer.

Which of the following is true for growth phase in a PLC?

  1. It is a phase which does not have higher sales

  2. Companies do not need to spend substantially on production and marketing

  3. Profit might decline at later stage

  4. Availability of resources is not a big factor


Correct Option: C
Explanation:

Profits decline at later stage in case of growth phase.Hence, it is the right answer.

In which of the following phases of PLC is the product modified to create differentiation?

  1. Introduction phase

  2. Growth phase

  3. Maturity phase

  4. Decline phase


Correct Option: B
Explanation:

Since customers become aware of the product, there is increased sale which attracts more competition. Therefore, differentiation of product is required to maintain and expand the market. Hence, it is the right answer.

What is the strategic objective of a problem child in a BCG matrix?

  1. To repel competitive challenges

  2. To hold sales and market share

  3. To find small market segment where dominance can be achieved

  4. To close the business


Correct Option: C
Explanation:

The company's strategic objective to find a small market segment and to achieve dominance in that is usually achieved in the case of a problem child.  In this case the market growth is very high but the relative market share is low and maximum expenditure is being incurred in achieving high market share. Hence, it is the right answer.

Which one of the following criterias has a defensive approach while selecting a brand element?

  1. Memorable

  2. Adaptable

  3. Meaningful

  4. Likeable


Correct Option: B
Explanation:

“Adaptable” criteria of selecting a brand element is defensive in nature as it helps in preserving the brand equity in the face of various problems and constraints. Hence,this is the right answer.

Which one of the following hierarchies is correct in ascending order?

  1. Line extension- brand line- brand mix

  2. Category extension- brand line- brand mix

  3. Category extension+ line extension- brand line- brand mix

  4. None of these


Correct Option: C
Explanation:

A brand line consists of category extension and line extension. Hence, it is the right answer.

Which of the following is a characteristic trait of a problem child in the BCG matrix?

  1. High relative market share and low market growth rate

  2. High relative market share and high market growth rate

  3. Low market growth rate and low relative market share

  4. High market growth rate and low relative market share


Correct Option: D
Explanation:

High market growth rate and low relative market share is a characteristic trait of a problem child. Hence,this is the right answer.

In the process of building brand equity, what ways are followed to leverage secondary associations?

  1. Sub-branding

  2. Co-branding

  3. Endorsements

  4. None of these


Correct Option: D
Explanation:

Option d) is the right answer as the answer is all of the above.

Which of the following is defined as the nature of relationship that customers have with the brand and the extent to which the customers feel in sync with the brand?

  1. Brand imagery

  2. Brand salience

  3. Brand resonance

  4. Brand performance


Correct Option: C
Explanation:

Brand resonance is defined as the  nature of relationship that customers have with the brand and the extent to which the customers feel in sync with the brand. Hence,this is the right answer.

In which of the following the overall cashflow is roughly balanced?

  1. Cash cow

  2. Star

  3. Dogs

  4. Problem child


Correct Option: B
Explanation:

In case of a star there are high earnings and high expenditure hence the cashflow is balanced out. Hence, it is the right answer.

In the following example Lifebuoy Active Red, Lifebuoy Active Orange, Lifebuoy International Plus and Lifebuoy International Gold what does “Lifebuoy” stand for?

  1. Sub-brand

  2. Family brand

  3. Parent brand

  4. None of the above


Correct Option: C
Explanation:

In this case Lifebuoy represents the parent brand that is the existing brand that gives birth to a brand extension. Hence, it is the right answer.

“Marlboro” differentiates its brand on which basis?

  1. Product differentiation

  2. Image differentiation

  3. Image

  4. Personnel differentiation


Correct Option: B
Explanation:

Marlboro differentiates its product on the basis of image, i.e. it portrays its brand image as cow boy image. Hence, it is the right answer.

Sales of new drugs show which pattern of PLC?

  1. Bell shaped PLC

  2. Growth- slump maturity pattern

  3. Cycle recycle pattern

  4. Scalloped PLC


Correct Option: C
Explanation:

A pharmaceutical company gives a push to its new drug aggressively and later when the sales start declining in the sales cycle it gives it another push due to which a cycle of lesser magnitude starts of. Hence, it is the right answer.

Sales of kitchen appliances show which pattern of PLC?

  1. Growth slump maturity pattern

  2. Bell shaped pattern

  3. Cycle recycle pattern

  4. Scalloped pattern


Correct Option: A
Explanation:

Sales of kitchen appliances show growth slump and maturity pattern as their sales grow rapidly when introduced, then it falls to a petrified level and then it is sustained by late adopters buying the product for the first time and the early adopters that replace the product. Hence, it is the right answer.

Which of the following categories of PLC is currently accepted but its cycle length is hard to predict?

  1. Style

  2. Fashion

  3. Fad

  4. All of the above


Correct Option: B
Explanation:

Fashion is a currently accepted or popular style in a given field. However the length of a fashion cycle is hard to predict. It can be long or short. Hence, it is a  wrong answer.

Which advertising strategy is used in maturity phase?

  1. Reduce to level needed to retain hard core loyals

  2. Build awareness and interest in mass market

  3. Build product awareness among early adopters and dealers

  4. Stress brand differences and benefits


Correct Option: D
Explanation:

The advertising strategy of stressing brand differences and benefits is followed in case of maturity phase. Hence, it is the right answer.

Market fragmentation takes place at which stage of market evolution?

  1. Emergence

  2. Growth

  3. Maturity

  4. Decline


Correct Option: C
Explanation:

Market fragmentation or specific segments of market are formed in case of the maturity phase of market evolution. Hence, it is the right answer.

What is the product strategy followed in the case of growth phase?

  1. Offer product extensions, service, warranty

  2. Diversify brands and items models

  3. Phase out weak

  4. Offer a basic product


Correct Option: A
Explanation:

To offer product extensions, service and warranty, is the product strategy carried out in case of growth phase. Hence, it is the right answer.

What is the distribution strategy followed in the introduction phase?

  1. Build more intensive distribution

  2. Build intensive distribution

  3. Build selective distribution

  4. Go selective phase out unprofitable outlets


Correct Option: C
Explanation:

The distribution strategy of building selective distribution is followed in introduction phase. Hence, it is the right answer.

Which of the following is not a strategy followed in the declining phase?

  1. Increasing firm's investment to strengthen competitive position

  2. Dropping unprofitable customer groups and strengthening the firms investment in lucrative niches

  3. Harvesting the firms investment

  4. Divesting the business slowly


Correct Option: D
Explanation:

Divesting of business should be carried out fast if the following strategy is followed. Hence, it is the right answer.

In which stage of market evolution does market consolidation take place?

  1. Emergence

  2. Growth

  3. Maturity

  4. Decline


Correct Option: C
Explanation:

Market consolidation takes place after market fragmentation due to emergence of some strong appeal. Hence, it is the right answer.

Differentiation, relevance, self esteem and knowledge are four key components of brand equity. Which of the two combine to form the brand strength?

  1. Differentiation and relevance

  2. Esteem and knowledge

  3. Differentiation and esteem

  4. Relevance and knowledge


Correct Option: A
Explanation:

Differentiation and relevance combine to form brand strength. Hence, this is the right answer.

Which of the following criteria should not be followed in the growth phase?

  1. To improve product quality and to add new features

  2. To add new models and flanker products

  3. To shift from product awareness advertisement to product preference advertisement

  4. To increase prices and shut out price sensitive buyers


Correct Option: D
Explanation:

The criteria of lowering the prices specially for price sensitive consumers is carried out in case of the growth phase. Hence, it is the right answer.

Pespsi owned Mountain Dew was launched with the tagline “Yahoo the Mountain Dew! It'll tickle your innards” in 1969.By 1990's the brand was disappearing. To turn the brand around Mountain Dew updated its packaging and launched ads with brand slogan ”Do the Dew”. Which of the following does the example belong to?

  1. Brand revitalization

  2. Brand reinforced

  3. Brand evaluation

  4. Brand crisis


Correct Option: A
Explanation:

The example given above belongs to brand revitalization as it defines how the brand image was changed with the changing taste of consumer. Hence, it is the right answer.

BMW introduced certain models in its 3 series automobiles in part to attract new customers and in the hope of “moving them up” to higher priced models. Which of the following brand role does the following example belong to?

  1. Cash cows

  2. Flankers

  3. Low-end entry level

  4. High end prestige


Correct Option: C
Explanation:

The following example is of low -end entry level brand role in which a relatively low priced brand in the brand portfolio is able to attract consumers to the brand franchise and later the customers can be traded up to a higher priced brand. Hence, it is the right answer.

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