QUESTION BANK

Satyendra,Sridhar, Sriharsh
USN: 5WA08MDZ17, 5WA08MDZ18, 5WA08MDZ19
M.Tech (PDM) – V sem
Subject: PRODUCT PLANNING & MARKETING (08 MPD 322)
Chapter:5 Forecasting sales potential (as per syllabus)

Topic 1: Forecasting Sales potential

1 In private firm the goal of organization for developing a new product is

considered by.
a. Profit and loss
b. Sales and Profit
c. Sales quantity
d. Total investment needed.

2 The crucial input that marketing provide for new product development is estimate
of profit (True / False)

3 Consumer choice behavior leads to new product development-- (True / False)

4 New product development is also based on the .

a. Ascetics of product
b. Quality
c. Purchase behavior
d. Order

5 To predict the demand we should estimate preference translation into choice ---
(True / False)

6 Manager responsible for new product development should know

a. Profit margin
b. Projected demand
c. Resources required
d. Projected market

7 Advertising and promotion is not a part of new product development.

(True / False)

8 Match the following In Intent translation how many percent chose their products
a) Mights i) 75.5%
b) Definates ii) 31.4
c) Probabilties ---- iii) 26.8%
Ans: a iii ; b i ; c ii

9 Logit model is valuable in

a. Preliminary design
b. Final design and Evaluation
c. Resources required
d. Projected market
 10 Match the following according to forecasting function
1 Logit Model A Subjective estimate of
purchase
2 Intent Translation B Accurate sales forecast
3 In early design phase C True intensiona n
Extrenious events
4 Behaviral Process Model D Perception and
preferance analysis
5 Morrisions model E Ordered properties and
preferance measures
6 Ranked probablity model F Linearly related to
purchase probablity
7 Mc Fadden G Non response bias
8 Final Consideration H Logit model

Ans:
a) 1 – H, 2 – G, 3 – F, 4 – E, 5 – D, 6 – C, 7 – B, 8 – A
b) 1 – A, 2 – B, 3 – C, 4 – D, 5 – E, 6 – F, 7 – G, 8 – H
c) 1 – B, 2 – A, 3 – D, 4 – C, 5 – F, 6 – E, 7 – H, 8 – G
d) 1 – D, 2 – F, 3 – E, 4 – C, 5 – A, 6 – B, 7 – G, 8 – H

1. Sales potential of new products will occur immediately. (True/False)

- False

2. Products which depend upon repeated purchase, we must consider the ________ &
________processes that lead to the dynamic growth of sales
a) Awareness & Distribution
b) Estimation & design
c) Trial & Repeat
d) None of the above

3. “Diffusion of an innovation” phenomenon is applicable for which type of new products

a) Home appliance
b) Automobiles
c) Industrial equipments
d) Aerospace

4. Not all purchase decisions are made by independent consumers. (True/ False)
- True

5. _________describes the role of each decision participants in each phase of the decision
process.
a) Decision chart
b) Decision matrix
c) Decision co-ordinates
d) All of the above

6. The dimensions which correlated to scales that reflected graduate having real-world
knowledge, action orientation, practicality, relevant skills, the ability to choose a carrier &
contact with business people is named as
a) Group skills
b) Job preparedness
c) Final selection
d) Technical skills
 7. Rearrange the following step of Multiperson Decision making process.
1. Equipment evaluation
2. Search for alternatives.
3. Evaluation of needs
4. Final selection
5. Budget approval

a) 1, 2, 3, 4, 5,
b) 3, 5, 2, 1, 4
c) 5, 2, 1, 3, 4
d) 5, 3, 2, 1, 4

8. “Group Skills” co-related to ____________________.

a) Leadership abilities & generalist aptitude
b) Sensitivity to people & action
c) Both a & b
d) None of the above

9. Match the following according to the new product forecasting function resides.

Department Primary responsible for

new product forecasting
(% of respondents)
1 Marketing A 3
2 Sales B 2
3 Sales Forecasting C 1
4 Finance D 4
5 Marketing Research E 10
6 R&D F 62
7 Manufacturing G 12
8 Logistics / Distribution H 6

Ans:
e) 1 – H, 2 – G, 3 – F, 4 – E, 5 – D, 6 – C, 7 – B, 8 – A
f) 1 – A, 2 – B, 3 – C, 4 – D, 5 – E, 6 – F, 7 – G, 8 – H
g) 1 – F, 2 – G, 3 – E, 4 – H, 5 – A, 6 – D, 7 – B, 8 – C
h) 1 – D, 2 – F, 3 – E, 4 – C, 5 – A, 6 – B, 7 – G, 8 – H

1. As the design phase progresses, the measures of purchase must become more refined because
the risks are _________.
1. Lesser
2. Higher
3. Negligible
4. Part of the purchase

2. An analytic technique to estimate purchase probabilities is ________.

1. Preference analysis
2. Logit Analysis
3. Purchase analysis
4. Probability analysis
3. Logit analysis provide ______ estimates of demand.
1. Accurate
2. Probabilistic
3. Approximate
4. Less accurate

4. Match the following

1. Intent Translation model a. More accurate (i) Used early in design process
2. Ranked Probability Model b. Less Accurate (ii) Used Later stage of design
3. Logit Model c. Less accurate (iii) Used early in design process

1. 1-b-i, 2-c-iii, 3-a-ii

2. 1-a-i, 2-c-iii, 3-b-ii
3. 1-b-i, 2-a-iii, 3-c-ii
4. 1-b-ii, 2-c-iii, 3-a-i

5. If there is X percent chance that consumer aware of the product & Y percent chance that it is
available to him & modeling predicts Z percent chances of sale of the product, then actual
buying P is _____.
1. X+Y+Z
2. X*Y*Z
3. 100 – X*Y*Z
4. Cannot be predicted

6. The buying of the product depends upon _________ and _________.

1. Availability & awareness
2. Availability & pricing
3. Pricing & awareness
4. Pricing & usefulness

7. ____ model is based on the magnitudes or intensities of preference through a model of

consumer choice behavior.
1. Intent translation
2. Logit
3. Ranked probability
4. Consumer behavior

8. The logit model is based on a theory of ______.

1. Probability
2. Consumer behavior
3. Ranked probability
4. Constraints

9. If X is observed preference measure & Y is uncertainty of preference measure, then true

choice indicator is given by ____.

1. X*Y
2. XY
3. X+Y
4. YX
 Product positioning
Prepared by :Raghavendra.N
USN: 5WA08MDZ15

1. The perceptual maps defines

a. Dimension
b. The positions of existing bound
c. Gaps where brands do not no exist
d. All the above

2. The core benefit proposition use ______________ preferences to identify the best
positioning
a. Customer
b. Manager
c. Consumer
d. All the above

3. The segmentation of target group called _____________

a. Benefit segmentation
b. Profit segmentation
c. Loss segmentation
d. None of the above

4. The easiest technique to measure consumer preferences is to use a __________ model

a. Liner
b. Multiple
c. Single
d. All the above

5. In new product design, the expectancy value model is used to get an early indication of
the key product attributes
a. True/false

6. PPS Stands for -- personalized premium service

7. BTS. -- budget taxi plan

8. The managerial diagnostics are based on averages with in a ___________ segment

a. Market segment
b. Consumer segment
c. Buyer segment
d. All the above

9. Preference regression uses a _________ sample of consumer to fit weights to best predict
observed preferences
a. Random
b. Common
c. Exact
d. None
10. The preference regression it is useful to rescale the rank order so a high number
represents first preference and a low number reflects the least preferred product
a. True/false

11. Method of running the regression is to use a program called PREFMAP

12. The disadvantages of preference regression is that it is usually based on the linear model
and it is not the best model to measure the nonlinear effects
a. True/false

13. Once the perceptual positioning is identified, the new product team must select product
characteristics to achieve that position.
a. true/false

14. Conjoint analysis is used in the intermediate design process to study the linkage of
features to _________ and linkage of features to __________
preference and perception.

15. Conjoint analysis is best used to select ___________ Feature a perception.

a. Analytical
b. Physical
c. Both a and b
d. None

16. Conjoint analysis is a technique to measure the ______________ preference of a model

a. Linear
b. Non linear
c. Multiple
d. All the above

17. Product positioning variables are

a. Features
b. Performance
c. Style
d. Design
e. All the above

18. When single benefit positioning is usually best

a. Best quality
b. Lowest price
c. Best value
d. Most reliable
e. All the above

19. Positioning errors are

a. Under positioning
b. Over positioning
c. Confused positioning
d. Doubtful positioning
e. All the above

20. Market positioning strategies are

a. Monosegment positioning
b. Multisegment positioning
c. Standby positioning
d. Anticipatory positioning
 1. PRODUCT STRTEGY AND PLANNING

AMARESH A. KARADI.
USN NO: 5WA08MDZ02
COURCE: (M Tech) Vth. SEMESTER:

1) Market place success is achieved by continually delivering superior value to------------

(a) Customers.
(b) Suppliers.
(c) Both a and b
(d) None of these.

2) The value is defined as the difference between the total benefit received and total cost
incurred by the --------------
(a) Consumers.
(b) Suppliers.
(c) Both a and b
(d) None of these.

3) PIMS means --------------

(a) Profit impact of Machine strategy.
(b) Profit impact of marketing strategy.
(c) Profit impact of Management strategy.
(d) None of these.

4) The Rewards of. --------------can be taken in the form of either higher prices or increase in
the market place.
(a) Higher profit.
(b) Higher quantity.
(c) Higher Quality.
(d) None of these.

5) -------------- is created by providing a benefit, solving a problem, meeting a need, and

helping a customer to achieve a goal.
(a) Impact.
(b) Strategy.
(c) Profit.
(d) Value.

6) A business system includes---------------------

(a) Research and development
(b) Sourcing
(c) Operations
(d) Service
(e) All the above

7) A set of unique capabilities that is not easily duplicated is called

-------------------------DISTINCTIVE COMPETITION.

8) Differences in the value, competitors provide to the consumers are based on the
differences in.
(a) Skills and resources.
(b) Business systems and the management.
(c) Both a & b.
(d) None of these.
9) The vast majority of -------------are incremental changes in either the product or the way it
is manufactured.
(a) Resources.
(b) Business systems.
(c) Innovations.
(d) None of these.

10) The cumulative impact of incremental changes is often ------------- that of revolutionary
changes.
(a) Equal to.
(b) Smaller than.
(c) Both a & b.
(d) Greater than.

11) To be successful, a firm needs to be able to sense changes more quickly than its
competition and to respond more quickly.
(a) False.
(b) True.

12) A --------- is a general plan to reach the chosen objectives

(a) Operation.
(b) Marketing.
(c) Strategy.
(d) Plan.

13) A --------- is an integrated set of activities that is designed to produce a sustainable

advantage over competitors.
(a) Operation Strategy.
(b) Marketing Strategy.
(c) Deliberate Strategy.
(d) Planning Strategy.

14) An -----------------provides no control; it is just a series of trails

(a) Operation Strategy.
(b) Marketing Strategy.
(c) Deliberate Strategy.
(d) Emergent strategy.

15) A-----------------should be part of a continual search for ways to add value.

(a) Planning.
(b) Marketing.
(c) Strategy.
(d) None of these.

16) A general marketing planning process includes for both new and existing products part of
a continual search for ways to add value.
(a) False.
(b) True.
17) As per peter the industry attractiveness is a function of the------ competitive forces.
(a) Five.
(b) Four.
(c) Six.
(d) None of these.
 18) Once a potentially attractive industry has been uncovered, attention should shift to finding
ways of offering ---------------than the
competition.
(a) Fewer values.
(b) Lesser value.
(c) Greater value.
(d) Both a & b.

19) Match the followings.

a) Situation analysis 1) Buyers and Suppliers

b) Mirror images 2) To answer the question, ‘where are we now’
c) Primary focus of strategizing 3) Soft drinks, and many durables such as clothes
d) Consumer non durables 4) A list of problems facing the brand
e) Output of the situation analysis 5) Assessment of the needs, goals, problems, desires of both

I) a) 1, b) 4, c) 3,d) 2, e) 5,
II) a) 5, b) 2, c) 3,d) 4, e) 1,
III) a) 2, b) 1, c) 5,d) 3, e) 4,
IV) a) 1, b) 3, c) 2,d) 4, e) 5,
V) a) 3, b) 1, c) 2,d) 5, e) 4,

20) Match the followings.

a) Strategy 1) Delivering and Creating value

b) Positioning 2) Marketing plan
c) Offer 3) Implement the chosen activity
d) Marketing Support 4) creating value
e) Budget 5) Image
f) Marketing actions 6) Plan

I) a) 1, b) 4, c) 3, d) 2, e) 5, f) 6
II) a) 5, b) 2, c) 3, d) 2, e) 1, f) 4
III) a) 2, b) 1, c) 5, d) 3, e) 4, f) 3.
IV) a) 6, b) 5, c) 4,d) 1, e) 2, f) 3
IV) a) 6, b) 3, c) 2, d) 4, e) 5, f) 1
IV) a) 1, b) 3, c) 2, d) 4, e) 6, f) 5

LAUNCHING PRODUCT AND SERVICES

QUESTION BANK
Prepared By: Vinayaka.H.S
V SEM PDM
5VW07MDZ23
1.The cost of Introduction of the products include the investment in ________________
a. Production and Marketing

b. Design and Marketing

c. Design and Production

d. None of the above

2. The _________ Production Starts results in long waits and customer dissatisfaction.

a. Late
 b. Early

c. Normal

d. None of the above

3. If production starts too ___, large inventories will result.

a. Early

b. Late

c. Normal

d. None of the above

4. One method of managing the issues of launch timing and co-ordination is called
________

a. Critical Path Analysis

b. Call Progress Analysis

c. Cost and Price Analysis

d. Cost Performance Analysis

5. PERT means_________________

a. Program Evaluation & Review Technique

b. Performance Evaluation and Review Technique

c. Progress Evaluation and Review Technique

d. Program Event Reporting and Tracking

6. ____________ is a technique to determine both the number of markets in which to

experiment and the size of the experiment.

a. Adaptive Control

b. Program Evaluation & Review Technique

c. Critical Path Method

d. Critical Path Analysis

7. Adaptive control is invented by _____ in the year 1966.

a. Little

b. Fischer

c. Douglas
 d. None of the above

8. As per Mr.Little advertising is revised proportionally to the change in ______.

a. Profit

b. Sales

c. Volume

d. None of the above

9. ______ Launch Program is very risk in nature and very costly.

a. Crash

b. Normal

c. Fast

d. None of the above

10. The systematic comparison of actual and predicted results is called_______

a. Tracking

b. Controlling

c. Examining

d. None of the above

CHAPTER – 4

PRODUCT POSITIONING: preference analysis and benefit segmentation

1. CBP stands for----------

(a) Core benefit purpose
(b) Core benefit preposition
(c) Core back up preference
(d) None of the above Ans: B

2. The segmentation of target groups is called---------------- by (HALEY,1968)

(a) Best segmentation
(b) Benefit segmentation
(c) Convenient segmentation
(d) All of the above Ans: B

3. The managerial diagnostics are based on averages within a---------------

(a) Consumer segment
 (b) Customer segment
(c) Customer range
(d) None of the above Ans: A

4. Benefit segmentation approach can determine if more than one product should be offered
to best meet consumer potential
TRUE / FALSE
Ans: TRUE
5. Studying linkage of features to perception and preference is associated with

(a) Conjoint analysis

(b) Customer analysis
(c) Both (a) and (b)
(d) None of the above Ans: A

6. “ CONJOINT ANALYSIS”—a mathematical technique to summarize ranking

information is useful to
(a) Manager
(b) Engineer
(c) Salesman
(d) None of the above Ans: A

7. Preference regression is a statistical technique which produces reasonably accurate

“AVERAGE”
TRUE / FALSE
Ans: TRUE

8. One method of running the regression is to use a program called------“(CARROLL 1972)

(a) PREFMAP
(b) PREEMAP
(c) Both (a) and (b)
(d) None of the above Ans: A

9. Conjoint analysis is the most appropriate when features need to be set for new products
TRUE / FALSE
Ans: TRUE

10. Perceptual map defines the dimensions, the position of existing bounds, gaps where
brands do not now exist.
TRUE / FALSE
Ans: TRUE

11. To develop the (CBP) core benefit preposition, we use---------- preferences to identify
best positioning
(a) Customer
(b) Public
(c) Consumer
(d) None of the above Ans: C

1. 1. Product life cycle is based on the belief that most products go thru a similar
set of stages over their lives ,much like living organisms .(True/false)
2. PLC divided into --------------- major stages
 a. Three
b. Four
c. Five
d. Six

3. Arrange in sequence
a. Introduction
b. Growth
c. Maturity
d. Decline
i) A,b,c,d
ii) B,c,a,d
iii) A,c,b,d
iv) D,c,b,a

4. There are at least ---------------different product life cycles ,depending on the

definition of the product.
a. Three
b. Four
c. Five
d. six

5. Depending on the definition of a product, which of the following is not a

product life cycles ,
a. Product class life cycles
b. Product form, life cycles
c. Brand life cycles
d. Product quality life cycles

6. A manager is ultimately interested in the ---------------- life cycle.

a. Product class
b. Product form
c. Brand
d. Product quality

7. For planning purposes and to understand the environment, ------------- and

------------------------------ cycles are more important because there is a greater
ability to generalize across product classes than across brands.
a. Product class life cycles , Product form life cycles
b. Product form life cycles , Brand life cycles
c. Brand life cycles
d. Product quality life cycles

8. There are more parallels between the -------------------- of computers and

automobiles than there are between the ------------------- of the Ford Model T
and the Taurus
a. Product class & Product form life cycles
b. Product Class life cycles , Brand life cycles
 c. Brand life cycles
d. Product quality life cycles

9. --------------------------- are influenced to a greater extent by environmental

conditions and less by the actions of individual managers than --------------------
a. Product class or Product form life cycles, Product quality life cycles
b. Product Class life cycles , Product quality life cycles
c. Product class or Product form life cycles , Brand life cycles
d. Product quality life cycles, Brand life cycles

10. The product life cycle curve for a particular product class is a function of
market, technological and competitive factors .(True/False)
11.Match the following
Depending on quickness to adopt innovations, Rogers classified adopters into
A. The innovators i) 2.5%
B. Early adaptors ii) 13.5%
C. Early majority iii) 34%
D. Late majority iv) 34%
E. Laggards v) 16%

a) A-iii,B-ii,C-v,D-i,E-iv
b) A-i,B-ii,C-iii,D-iv,E-v
c) A-ii,B-iii,C-v,D-i,E-iv
d) A-iii,B-ii,C-i,D-iv,E-v