MCQ on Product Lifecycle Management

MCQ on Product Lifecycle Management
Q.1 In the literature of product life cycle management, the term technological risk refers to

  1. lost sales related to deferring investments.
  2. lost sales related to making unprofitable investments.
  3. losses related to declining market share for companies that are not technological leaders.
  4. losses related to research and development costs***
    Q.2 In the literature of product life cycle management, the term market risk refers to
  5. lost sales related to deferring investments.
  6. lost sales related to making unprofitable investments.
  7. losses related to declining market share for companies that are not technological leaders***
  8. losses related to research and development costs.
    Q.3 Forward pricing refers to pricing products based on the expected product costs during the which
    stage of the product life cycle?
  9. startup.
  10. growth.
  11. maturity***
  12. decline.
    Q.4 Which of the following is more closely related to the learning curve?
  13. economies of scope.
  14. dynamic economies of scale***
  15. static economies of scale.
  16. diminishing returns to scale
    Q.5 Approximately what percentage of a product’s life cycle costs are established in the conception,
    design and development stages?
  17. 50 to 60.
  18. 60 to 70.
  19. 70 to 80.
  20. over 80***
    Q.6 The portfolio concept related to investment management and product life cycle management
  21. considers a company’s investments projects as a whole rather than as separate and unrelated.
  22. recognizes that synergistic benefits are obtained from many interrelated projects.
  23. considers that mature investment projects tend to support projects at other life cycle stages.
  24. a., b. and c***
    Q.7 Which of the product life cycle production stages are typically evaluated in traditional cost
    accounting control systems?
  25. conception.
  26. design.
  27. development.
  28. production***
    Q.8 Forward pricing refers to
  29. Establishing prices on new products that are high, relative to the initial unit cost, to allow for
    large discounts after sales begin to lag.
  30. Establishing prices on new products just above the initial unit cost to discourage competitors
    from entering the market.
  31. Establishing prices on new products below the initial unit cost to discourage competitors
    from entering the market***
  32. Establishing prices on new products prior to production.
    Q.9 From the marketing life cycle perspective, a company’s profits usually peak during the
  33. tartup stage.
  34. growth stage.
  35. maturity stage***
  36. harvest stage.
    Q.10 Which of the following is (are) compatible with the life cycle concept?
  37. A vertical organizational structure.
  38. Employee empowerment***
  39. Responsibility accounting.
  40. Standard costing.
    Q.11 Conceptually, whole life product costs end when
  41. the producer stops producing the product.
  42. the producer stops providing service & parts for the product.
  43. the consumer disposes of the product.
  44. the externality costs to society &amp the environment end***
    Q.12 The greatest opportunity for product life cycle cost reductions are in the
  45. conception stage.
  46. design stage***
  47. development stage.
  48. production stage.
  49. logistical support stage.
    Q.13 Which of the following costs are not considered in product life cycle management?
  50. design costs.
  51. development costs.
  52. logistical support costs.
  53. none of the above***
    Q.14 What is the main objective of product life cycle analysis from the producer’s perspective?
  54. minimize life cycle externalities.
  55. maximize life cycle profit***
  56. minimize life cycle costs.
  57. cost vs. benefit.
    Q.15 What is the main objective of product life cycle analysis from the customer’s perspective?
  58. minimize life cycle externalities.
  59. maximize life cycle profit.
  60. minimize life cycle costs.
  61. cost vs. benefit***
    Q.16 What is the main objective of product life cycle analysis from society’s perspective?
  62. minimize life cycle externalities***
  63. maximize life cycle profit.
  64. minimize life cycle costs.
  65. cost vs. benefit.
    Q.17 What is the producer’s strategic objective at the startup and production stage of the
    product life cycle?
  66. cash flow and profit.
  67. profit.
  68. sales growth***
  69. all of the above.
    Q.18 Target costing is most applicable to which stages in the product life cycle?
  70. design and development***
  71. development and production.
  72. production and logistical support.
  73. Logistical support and abandonment.
    Q.19 In product life cycle management, which costs are emphasized in design and development?
  74. product costs related to characteristics such as the number of product parts.
  75. logistical support costs.
  76. Customer consumption costs.
  77. a., b. and c***
    Q.20 Companies have been reluctant to use product life cycle management concepts for which of the
    following reasons?
  78. the emphasis in PLC management is on the long run rather than the short run payback.
  79. the benefits of PLC management are not equally distributed across the organization’s
    functional groups.
  80. the data needed to support the PLC is difficult to obtain.
  81. a., b. and c***
    Q.21 The production era is best described as which of the following?
  82. Customers are plentiful and easily pleased***
  83. Products are manufactured and promoted to customers
  84. Customer needs and wants are considered with appropriate products being manufactured and
    promoted
  85. Products are plentiful, with fierce competition for customers
    Q.22 The sales era is best described as which of the following?
  86. Customers are plentiful and easily pleased
  87. Products are manufactured and promoted to customers***
  88. Customer needs and wants are considered with appropriate products being manufactured and
    promoted
  89. Products are plentiful, with fierce competition for customers
    Q.23 According to Jenkins, customer loyalty is achieved by which of the following?
  90. Altering the marketing mix of products in order to increase sales to existing customers***
  91. Extending the range of products available for customers to purchase
  92. Keeping sales volume buoyant with new customers
  93. Expanding the number of customers and markets for existing products
    Q.24 The marketing mix consists of which four areas?
  94. Product, price, profit and promotion
  95. Product, profit, promotion and provision
  96. Product, promotion, potential and profit
  97. Product, price, place and promotion***
    Q.25 In which of the following stages of the product life cycle do sales peak?
  98. Introduction
  99. Growth
  100. Maturity
  101. Saturation***
    Q.26 In which of the following stages of the product life cycle do profit peak?
  102. Introduction
  103. Growth
  104. Maturity***
  105. Saturation
    Q.27 which of the following is/are product life cycle extension strategies?
  106. Market development
  107. Product development***
  108. Unrelated diversification
  109. Market development and product development
    Q.28 Which of the following is stage of Product Life Cycle?
  110. Introduction Stage
  111. Growth stage
  112. Mature stage
  113. All of the above***
    Q.29 When a new product arrives in the market with higher quality, higher value and new features
    better than its competitors. Such products are known as
  114. Superior products
  115. Develop superior products
  116. Unique superior products***
  117. New products
    Q.30 Which of the following is not a characteristic of “Market Introduction Stage” in PLC?
  118. Demands has to be created
  119. Costs are low***
  120. Makes no money at this stage
  121. Slow sales volume to start
    Q.31 developing a unique superior product with high quality, new features, and high value in use is
    ……….. in new product development strategy.
  122. New product development process
  123. Typical reasons for failure
  124. Success factors***
  125. Product concept
    Q.32 Which thing will make the project more attractive while evaluating a new development project
    using net present value analysis?
  126. Market penetration
  127. Sequential product development
  128. Idea generation
  129. Continuous improvements***
    Q.33 According to whom “a product lifecycle is very much similar to human life cycle.”
  130. Arch Paton***
  131. Stanton
  132. Neil Borden
  133. Philip Kotler
    Q.34 Increased competition leads to price decrease, increasing public awareness, sales volume
    increase significantly are the characteristics of ……….. in PLC.
  134. Mature stage
  135. Decline stage
  136. Growth stage***
  137. Market introduction stage
    Q.35 ……….includes review of sales, profit projections and cost for a new product, to find out whether
    it satisfied the company objective or not.
  138. Product Development
  139. Business Analysis***
  140. Marketing Strategy
  141. Test Marketing
    Q.36 In ………….all the augmentations and transformations of a product might undergo in the failure.
  142. Generic Product
  143. Expected Product
  144. Augmented Product
  145. Potential Product***
    Q.37 Which concept is useful for a family of products who shares similar technology?
  146. Product Platform***
  147. Pricing Platform
  148. Process Platform
  149. Distribution Platform
    Q.38 Color and size of the product, brand and packaging are considered a
  150. Chemical features of product
  151. Physical features of product***
  152. Product designing
  153. Product manufacture
    Q.39 Which is the next stage after “Idea Generation” in “New Product Development Process”?
  154. Feature specification
  155. Testing
  156. Development
  157. idea Screening***
    Q.40 In “Product Life Cycle” a stage represents rapid growth of product sale knows as
  158. Market introduction phase
  159. Growth phase***
  160. Saturation phase
  161. Mature phase
    Q.41 The objective of ……….is to achieve better performance at a lower cost.
  162. Value Analysis/Value Engineering***
  163. Quality Function Development
  164. Effective production step
  165. Continuous Improvements
    Q.42 ………..Stage introduces a new product in the market.
  166. Evaluation
  167. Commercialisation***
  168. Feature specification
  169. Development
    Q.43 To reach forward for positioning strategy and to come back to core capabilities. Which strategy is
    important in the case?
  170. Differentiation strategy***
  171. New product strategy
  172. Market strategy
  173. Product development strategy
    Q.44 In terms of “Product Life Cycle”, a style is a basic and distinctive mode of
  174. Perception
  175. Growth
  176. Impression
  177. Expression***
    Q.45 The product life cycle describes the stages a new product goes through in the _
  178. introduction phase
  179. test market
  180. product development
  181. marketplace***
    Q.46 During the introduction stage of the PLC sales grow slowly, and:
  182. competition becomes tough
  183. profit is minimal***
  184. more investors are needed
  185. sales people are brought to push the product
    Q.47 The marketing objective for the maturity stage of the PLC is to:
  186. maintain brand loyalty***
  187. stress differentiation
  188. harvest
  189. deletion
    Q.48 The stage of the PLC whose competitors appears is:
  190. introduction
  191. decline
  192. competition is always there
  193. growth***
    Q.49 The stage when the cost of gaining new buyers increases
  194. pre-investment
  195. Introduction
  196. maturity stage***
  197. decline
    Q.50 When a company retains the product but reduces marketing support costs it is in what stage of
    the PLC
  198. decline***
  199. maturity
  200. growth
  201. introduction
    Q.51 A company will follow one of two strategies to handle a declining product: deletion or:
  202. modification
  203. harvesting***
  204. enhancement
  205. strategic change
    Q.52 How much does it take to go through a PLC?
  206. 1 day to 365 days
  207. 1 year to 5 years
  208. 1 year for consumer products and 5 years for industrial products
  209. No set time***
    Q.53 A PLC curve that rises rapidly then falls quickly is indication of a:
  210. fashion product
  211. low learning product
  212. fad***
  213. high learning product
    Q.54 The concept that explains how a product spreads through the population is called the:
  214. acceptance rate
  215. diffusion of innovation***
  216. infusion of sales
  217. entry rate
    Q.55 Product managers are sometimes called
  218. manager of goods
  219. consumer specialist
  220. brand manager***
  221. product pusher
    Q.56 Repositioning the product or product line is an attempt by the company to:
  222. maximize profits
  223. get more promotional support
  224. help the sales of individual retail operations
  225. bolster sales***
    Q.57 Changing the value offered up or down is an example of:
  226. repositioning a product***
  227. changing your mind
  228. decreasing overall costs
  229. defensive marketing
    Q.58 An organization using a name, phrase, design, symbols, or combination of these to identify its
    products is
  230. repositioning product lives
  231. forming family units
  232. trademarking products
  233. branding products***
    Q.59 A good brand name that gives added value to the product is called:
  234. brand equity***
  235. licensing
  236. brand personality
  237. generic branding
    Q.60 Warranties that are written statement of liabilities that are called:
  238. full warranties
  239. express warranties***
  240. limited coverage warranties
  241. strict liability warranties
    Q61 – What does the term PLC stands for?
  242. Product life cycle***
  243. Production life cycle
  244. Product long cycle
  245. Production long cycle
    Q62 – PLC in marketing represents two main challenges. 1st an organization must be good at
    developing new product to replace old ones and 2nd it must be good at _____.
  246. Functioning
  247. Marketing
  248. Selling
  249. Adapting***
    Q63 – When a new product arrives in the market with higher quality, higher value and new features
    better than its competitors. Such products are known as
  250. Superior products
  251. Develop superior products
  252. Unique superior products***
  253. New products
    Q64 – Which of the following is not a characteristic of “Market Introduction Stage” in PLC?
  254. Demands has to be created
  255. Costs are low***
  256. Makes no money at this stage
  257. Slow sales volume to start
    Q65 – Developing a unique superior product with high quality, new features, and high value in use is
    _ in new product development strategy.
  258. New product development process
  259. Typical reasons for failure
  260. Success factor***
  261. Product concept
    Q66 – Which thing will make the project more attractive while evaluating a new development project
    using net present value analysis?
  262. Market penetration
  263. Sequential product development
  264. Idea generation
  265. Continuous improvement***

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