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Question

Assertion (A) : Marketers are increasingly asked to justify their investments in financial and profitability terms and rarely in terms of building the brand and customer base.

Reasoning (R) : Organizations recognize that little of their market value comes from intangible assets.

Code :

This question was previously asked in
UGC NET 2016 Paper 2 Management Question Paper (22-Jan-2017)
The correct answer is

Both (A) and (R) are incorrect.

Option 2 — Both (A) and (R) are incorrect is correct.

Modern marketing theory (Kotler) says marketers are increasingly asked to justify investments in financial and profitability terms as well as in terms of building the brand and customer base — not “rarely” in brand/customer terms. Assertion (A) mis-states this by claiming brand and customer-base justification is rare, so (A) is false.

Reasoning (R) is also wrong. Organizations recognise that much — not little — of their market value comes from intangible assets such as brands, customer relationships, knowledge and goodwill. The statement inverts the accepted view, so (R) is false.

Since both statements contradict established marketing thought, the correct code is that both A and R are incorrect.

Why the other options are wrong: options 1, 3 and 4 all treat A (and, for 1, R) as correct, but each statement is factually reversed, so none of them can hold.

Takeaway: brands and customer relationships are prized intangible assets, and marketers must justify spend in both financial and brand-building terms — making both A and R false.

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