Question 1
What is a product portfolio?
A single product line offered by a company
All the brands a company owns
All the product lines and items offered for sale by a company
Only the high-end products offered by a company
Question 2
Which of the following best describes the “width” of a product portfolio?
The number of product lines a company has
The number of products within a single line
The market share of each product line
The revenue generated by each product
Question 3
A product line that offers a range of products to cover different price points and customer needs demonstrates which strategy?
Modernization
Low-cost strategy
Line extension
Brand consolidation
Question 4
Which of the following is NOT a benefit of a short product line?
Reduces risk of cannibalization
Facilitates the production process
Better accepted by retailers
Covers a greater number of market segments
Question 5
In product line analysis, which type of product is designed to attract customers by offering a low price point, despite having low profitability?
Product that prepares the future
Tactical product
Loss leader product
Premium product
Question 6
A “high-end” product strategy focuses on:
Providing the highest possible quality and brand appeal to justify higher prices
Offering a wide variety of features for a minimal price
Reducing costs to offer competitive pricing
Expanding product distribution channels
Question 7
What is the purpose of “product line pruning”?
Adding more products to the line to meet unsatisfied customer needs
Updating aging products to extend their life
Removing less profitable or strategic products to streamline the line
Expanding into new markets to capture a larger audience
Question 8
In the Boston Consulting Group (BCG) matrix, products categorized as “dogs” are typically:
High-growth, high-profit items
Low-growth, low-profit items
Market-leading items with high brand equity
New market entrants expected to grow rapidly
Question 9
Which of the following is a primary risk associated with a large product line?
Increased risk of customer churn
Difficulty in managing high inventory levels
Simplification of the production process
Reduction in distribution costs
Question 10
The strategy of expanding a product line to include more budget-friendly options is known as:
Upward extension
Consolidation
Downward extension
Pruning
Question 11
"Modernization” as a product line strategy focuses on:
Extending the life of aging products
Removing underperforming products
Expanding product lines for new markets
Reducing production costs for higher margins
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