Which statement is true about products in the decline stage of the product life

Question

1. Which statement is true about products in the decline stage of the product life cycle?
   A. Brand managers should phase-out this product as quickly as possible.
   B. A declining product may still be profitable for some time and it might be more appropriate to phase-out this product gradually.
   C. Customers will always abandon the declining product immediately if an alternative is available.
   D. Phasing-out a product at this time is fairly easy and this strategy will cut future losses.
   E. None of the above statements are true.
2. According to the US Federal Trade Commission (FTC), a firm can call its product "new" for _____ months.
   A. 1
   B. 3
   C. 6
   D. 9
   E. 12
3. A channel of distribution:
   A. is any series of firms or individuals who participate in the flow of goods and services from producer to final user or consumer.
   B. must include an intermediary.
   C. must have at least three members--a manufacturer, a wholesaler, and a retailer.
   D. can't include use of direct distribution from a website.
   E. None of the above is a true statement.
4. A direct-to-customer channel
   A. includes a retailer but not a wholesaler.
   B. usually helps the producer to be more aware of changes in final customer attitudes.
   C. eliminates some of the marketing functions.
   D. is typical to reach final consumer markets.
   E. is most suitable when a large number of transactions are required in the channel or when orders are smaller.
5. The physical distribution concept says (or implies) that:
   A. transporting, storing, and product-handling are unrelated activities for cost control.
   B. the best distribution system is the lowest cost one.
   C. a firm should seek to minimize the total cost of transporting, storing, and product-handling--for a given level of customer service.
   D. if the transporting department minimizes its costs and the storing department minimizes its costs and the product-handling department minimizes its costs--then the total cost of physical distribution will be minimized.
   E. Both A and D.

Explanation / Answer

1.b

See this : http://productlifecyclestages.com/product-life-cycle-stages/decline/

2. E

3.A

http://www.investopedia.com/terms/d/distribution-channel.asp

4.c

http://smallbusiness.chron.com/direct-consumer-marketing-788.html

5.e

http://wiki.answers.com/Q/What_is_physical_distribution_in_marketing?#slide=9

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