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Question 1

Intermediaries are most closely associated with the concept of:

a) Market targeting
b) Market segmentation
c) Channels of distribution
d) Marketing information systems
C
Question 2

Intermediaries typically perform all of the following functions, except:

a) Breaking down bulk
b) Making goods locally available
c) Providing expert local market knowledge
d) Creating direct communication from the customer to manufacturer
D
Question 3

Which type of channel of distribution is most likely to be typical of specialized, highly

variable products such as adventure holidays?

a) Distribution through franchised network

b) Direct sale from tour operator to consumer
c) Use of 'High Street' travel agents
d) Sale through wholesaler
B
Question 4
 A branded, high volume, low value consumer good is most likely to be sold through which
of the following types of distribution channel?

a) Direct sale from the manufacturer to consumer

b) Sale through brokers
c) Sale through specialist retail outlets
d) Sale through many general retail outlets
D
Question 5

Which of the following is not true of franchisees?

a) They are always small owner managed businesses.
b) They generally agree to charge prices in accordance with the franchisor's
guidelines.
c) They generally enter an agreement with a franchisor for a fixed period.
d) They create legal relationships between themselves and their customers.
A
Question 6

Which of the following services is LEAST likely to be franchised?

a) Industrialized services
b) Highly variable, customized, one-to-one services
c) Mass-market services
d) Low value services
B
Question 7

In general, as physical distribution systems develop, which of the following is most likely to
be true?

a) Levels of stockholding increase more than proportionately

 b) Goods travel longer overall distances
c) Goods travel shorter overall distances
d) The number of warehouses increases more than proportionately
B
Question 8

'Just-in-Time' systems of distribution are particularly dependent upon:

a) Low unit transport costs

b) Low unit warehousing costs
c) Information flow between channel members
d) Large numbers of suppliers
C
Question 9

Which of the following intermediaries DOES NOT generally create legal relations between a
manufacturer or service principal and its customers?

a) Service agents
b) Franchisees
c) Retail shop selling newspapers
d) None of the above
A
Question 10

Although not a conventional product, the UK National Lottery uses which type of
distribution for the sale of its tickets?

a) Scatter distribution
b) Intensive distribution
c) Exclusive distribution
d) Selective distribution
B

1. In the literature of product life cycle management, the term technological risk refers
to

a. lost sales related to deferring investments.

b. lost sales related to making unprofitable investments.
c. losses related to declining market share for companies that are not
technological leaders.
d. losses related to research and development costs.
e. none of these.

d
2. In the literature of product life cycle management, the term market risk refers to

a. lost sales related to deferring investments.

b. lost sales related to making unprofitable investments.
c. losses related to declining market share for companies that are not
technological leaders.
d. losses related to research and development costs.
e. none of these.

C
3. Forward pricing refers to pricing products based on the expected product costs
during the which stage of the product life cycle?

a. startup.
b. growth.
c. maturity.
d. decline.
e. abandon.

c
4. Which of the following is more closely related to the learning curve?

a. economies of scope.
b. dynamic economies of scale.
c. static economies of scale.
d. diminishing returns to scale.
e. none of these.

5. Approximately what percentage of a product’s life cycle costs are established in the
conception, design and development stages?

a. 50 to 60.
b. 60 to 70.
c. 70 to 80.
d. over 80.
e. none of these.

6. The portfolio concept related to investment management and product life cycle
management

a. considers a company’s investments projects as a whole rather than as separate

and unrelated.
b. recognizes that synergistic benefits are obtained from many interrelated
projects.
c. considers that mature investment projects tend to support projects at other life
cycle stages.
d. a. and b.
e. a., b. and c.

7. Forward pricing refers to

a. Establishing prices on new products that are high, relative to the initial unit
cost, to allow for large discounts after sales begin to lag.
b. Establishing prices on new products just above the initial unit cost to
discourage competitors from entering the market.
c. Establishing prices on new products below the initial unit cost to discourage
competitors from entering the market.
 d. Establishing prices on new products prior to production.
e. Establishing prices on new products by working forward from the target cost.

8. Which of the product life cycle production stages are typically evaluated in
traditional cost accounting control systems?

a. conception.
b. design.
c. development.
d. production.
e. c and d.

9. From the marketing life cycle perspective, a company’s profits usually peak during
the

a. startup stage.
b. growth stage.
c. maturity stage.
d. harvest stage.
e. none of these.

10. Which of the following is (are) compatible with the life cycle concept?

a. A vertical organizational structure.

b. Employee empowerment.
c. Responsibility accounting.
d. Standard costing.
e. b and c.

B
11. Conceptually, whole life product costs end when

a. the producer stops producing the product.

b. the producer stops providing service & parts for the product.
c. the consumer disposes of the product.
d. the externality costs to society & the environment end.

12. The greatest opportunity for product life cycle cost reductions are in the

a. conception stage.
b. design stage.
c. development stage.
d. production stage.
e. logistical support stage.

13. Which of the following costs are not considered in product life cycle
management?

a. design costs.
b. development costs.
c. production costs.
d. logistical support costs.
e. none of the above.

14. What is the main objective of product life cycle analysis from the producer's
perspective?

a. minimize life cycle externalities.

b. maximize life cycle profit.
c. minimize life cycle costs.
d. e. none of the above.

B
15. What is the main objective of product life cycle analysis from the customer's
perspective?

a. minimize life cycle externalities.

b. maximize life cycle profit.
c. minimize life cycle costs.
d. cost vs. benefit.
e. none of the above.

16. What is the main objective of product life cycle analysis from society's
perspective?

a. minimize life cycle externalities.

b. maximize life cycle profit.
c. minimize life cycle costs.
d. cost vs. benefit.
e. none of the above.

17. What is the producer's strategic objective at the startup and production stage of the
product life cycle?

a. cash flow and profit.

b. profit.
c. sales growth.
d. all of the above.
e. none of the above.

18. Target costing is most applicable to which stages in the product life cycle?

a. design and development.

b. development and production.
c. production and logistical support.
d. logistical support and abandonment.
e. none of the above.

A
19. In product life cycle management, which costs are emphasized in design and
development?

a. product costs related to characteristics such as the number of product parts.

b. logistical support costs.
c. customer consumption costs.
d. a. and b.
e. a., b. and c.

20. Companies have been reluctant to use product life cycle management concepts for
which of the following reasons?

a. the emphasis in PLC management is on the long run rather than the short run
payback.
b. the benefits of PLC management are not equally distributed across the
organization's functional groups.
c. the data needed to support the PLC is difficult to obtain.
d. a. and b.
e. a., b. and c.