Correct Answer: Advertising Standards Council of India (ASCI)

Solution : The correct answer is (c) Advertising Standards Council of India (ASCI)

The Advertising Standards Council of India (ASCI) is a self-regulatory body that oversees advertising in India. It has a code of conduct that advertisers are expected to follow, and it investigates complaints about misleading advertising.

However, the first step for a consumer who has been misled by an advertisement is to complain to ASCI. If ASCI finds that the advertisement is misleading, it will ask the advertiser to withdraw it. If the advertiser does not withdraw the advertisement, ASCI can publish its findings on its website, which can damage the advertiser's reputation.

Correct Answer: Irrelevance

Solution : The correct answer is (c) Irrelevance.

By highlighting the long-term cost savings, ABC Corporation makes the advertisement more relevant to consumers who are likely interested in saving money over an extended period. It directly addresses a significant concern for consumers, making the advertisement more pertinent and appealing to their needs and interests.

Correct Answer: Enhanced Customer Relationships

Solution : The correct answer is (c) Enhanced Customer Relationships. 

Advertising can help in establishing a connection with the customers by showcasing the innovative gadgets and technology of XYZ Electronics. By creating awareness and fostering positive perceptions through advertising, XYZ Electronics can enhance its relationship with customers. Effective advertising can build trust, credibility, and engagement with the audience, ultimately leading to stronger and more positive customer relationships.

Correct Answer: Helps in product differentiation

Solution : The process of giving the name, sign or symbol to a product is called branding. Branding helps in distinguishing its product from other competing products. It enables the form to secure and control the market for its products.

Hence,option A is correct.

Correct Answer: Lack of Credibility

Solution : The correct answer is (a) Lack of Credibility.

By providing specific and factual information about their products, including detailed specifications and performance data, ABC Electronics aims to enhance the credibility of their advertisements. This approach ensures that consumers have accurate and transparent information to evaluate the product's features and capabilities, minimizing skepticism about potential exaggerations or deceptions often associated with advertising. Providing factual and detailed data builds trust with the audience and strengthens the credibility of the advertised claims.

Correct Answer: The optimal pricing strategy.

Solution : The correct answer is (a) The optimal pricing strategy.

Elasticity provides crucial information to businesses regarding how responsive consumers are to changes in price. By understanding the price elasticity of demand for their products, businesses can make informed decisions about their pricing strategy. Specifically, they can assess the impact of price changes on the quantity demanded and, consequently, on their total revenue.

If demand is elastic (elasticity greater than 1), a decrease in price may lead to a more than proportionate increase in quantity demanded, resulting in increased total revenue. On the other hand, if demand is inelastic (elasticity less than 1), a price increase may result in a less than proportionate decrease in quantity demanded, potentially increasing total revenue.

Therefore, by considering the concept of elasticity, businesses can make more accurate pricing decisions and determine the optimal pricing strategy that maximizes their revenue and profitability.

Correct Answer: Helps in product differentiation

Solution : The process of giving the name, sign or symbol to a product is called branding. Branding helps a form in distinguishing its product from other competing products. It enables the form to secure and control the market for its products.

Hence,option A is correct.

Correct Answer: Enhanced Brand Recall

Solution : The correct answer is (c) Enhanced Brand Recall. 

ABC Clothing uses various advertising channels like television, social media, and print media to promote its latest fashion collection. By utilizing these channels, ABC Clothing aims to enhance brand recall, making sure that consumers remember their brand and fashion collection when they think about clothing or related products. Advertising helps in creating a lasting impression and improving brand recall among the target audience. Direct sales conversion and short-term sales boost are possible outcomes of effective advertising, but in this case, the focus is on enhancing brand recall, which is a longer-term benefit. Cost minimization is not the primary advantage highlighted here.

Correct Answer: District Consumer Disputes Redressal Forum

Solution : The correct answer is (d) District Consumer Disputes Redressal Forum

The District Consumer Disputes Redressal Forum in India is responsible for addressing consumer complaints and disputes related to the purchase of goods and services, including cases of deceptive or misleading practices. They can help the consumer seek redress and potentially rule in their favor, ensuring that the dealer follows consumer protection laws. The other options listed are not the appropriate authorities for addressing this specific consumer grievance.

Correct Answer: Both the assertion and reason are true, and the reason is a correct explanation of the assertion.

Solution : The correct answer is (a) Both the assertion and reason are true, and the reason is a correct explanation of the assertion.

The assertion is true. In an oligopoly, a small number of firms have significant market power and control a substantial portion of the market. These firms often compete with each other for market share.

The reason provided is also true. Oligopolistic firms often rely on strategies other than price to differentiate themselves and attract customers. This can include advertising campaigns, product innovation, branding, and other forms of non-price competition. These strategies allow firms to create a perceived difference in their products or services and compete based on factors other than price.

Therefore, both the assertion and reason are true, and the reason correctly explains why oligopolistic firms tend to engage in non-price competition.