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When demand for your company’s product is 10,000 units and you ordered production of 12,000 units you will be left with n inventory of 2,000 units that will be available for your company to sell in the next period. True, you would be left with 2,000 units. 3. More “Special Commands” will be always preferred then fewer “special commands” by all customers. False, most consumers are not highly tech-savvy, so more special commands only makes the product more difficult to use. 4. Your sales will go up with “lower” prices in all segments. True, people tend to buy more frequently if prices are lower. 5.
In this game you set “recommended retail price”. False, the VOID sets the recommended retail price, but the dealer ultimately hoses price. 6. If the “wholesale price” off product is $100, its retail price in Channel 1 will be $150. True, the mark-up in Channel 1 is 50%, so 50% of $100 is $50. $100+50=$150 7. If the “unit cost” of a product is $100, its whole sale price is $150 then it is better to have a “stock out” situation rather than an “inventory” situation. False, it is better to have inventory left over because if you simply don’t have the product, people will go to your competitors and you will lose sales entirely. . Distribution Intensity refers to the number of sales people you assign to a channel. False, this is referring to the number/percentage of dealers assigned to each channel. 9. You have complete freedom over your marketing expenditures in a given period as long as you make a profit for that period. True, though you want to ensure that you are making the largest possible profit. 10. The best segment to pursue is one that is largest and growing fast. True, because this is where you will gain a lot of quick money. However, this segment needs to be steady and will have a future need for the product.
If the segment is growing fast then comes to a halt that is bad. 11. All the segments are currently growing approximately at the same rate. False, all of the segments are growing at different rates, some slower than others, but at different rates. 12. If you change the product specifications on special commands from 8 to 1 0, your product modification cost will be twice as much if you change it from 8 to 9. False, it will be 4 times the cost. 8 CLC 10 = xx 32(thousand) 8 D 9 = ex. XSL = 8(thousand) 13. If you reduce the level of any of your product characteristics there is no product modification cost involved.
False, there are no changes in price unless you are changing the “ease of earning”, which will cost $3,000 x (change). 14. If your spending exceeds your allocated budget, then your budget gets reduced by that amount in the next period. False, generally your budget would either increase or remain the same. Budget cuts might just need to be made in the next period. 15. Every company gets the same amount of marketing budget for every period. False, your manager (VOID) determines the amount of money each department receives each period. 16. Your product sells at approximately the same price to consumers in both the channels.