Q1 - A product life cycle strategy involves lower R&D costs. As product naturally shift to lower level segments, new products are launched for the higher end segment.

options:

True

False

Q2 - In the buying criteria for the Traditional segment, the price range for this round is $17.00 - $27.00. Because of automation, HR efforts, and TQM, you have a tremendous advantage over other teams and can produce your traditional product for just $9.00 per unit.The next best team has a total unit cost of $14.00.To maximize sales and profit, you decide to set your price at 15.50 figuring the price will allow you to gain strong profits from increased market share. This pricing approach will provide the greatest sales and profit for your team.

options:

True

False