Which of the following is true of the product life cycle?
A) In the early stages of the product life cycle, the NMC is positive.
B) As the product moves into the declining stage, it reaches a break-even NMC.
C) As the market matures, flat market demand, and lowered marketing and sales expenses results in higher NMCs.
D) At a break-even NMC, the gross profit is equal to the marketing and sales expenses.
E) At the early growth stage, the annual NMCs grow and eventually peak.
D
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In which of the following geographic pricing strategies would customers located close to the company pay the same amount as customers in distant locations?
A) uniform-delivered pricing B) zone pricing C) FOB-origin pricing D) location-based pricing E) reference pricing
Which of the following is a major disadvantage of the cellular type of organizational design?
A) It requires an exceptionally strong surrounding subculture, clearly established values, and a high degree of trust. B) It often has a slow reaction time because of the complexity of getting decisions made across different levels. C) Vertical top-down communications are less efficient as they are complicated by dual reporting relationships. D) There is greater organizational inflexibility in this design as lines of communication are not well-defined. E) It requires every individual member to remain in constant communication with every other member in the organization.