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Guidelines to Prepare a Workbook

1. The author has to read the respective Unit in the SLM (Self Learning Material) before writing
the questions.
2. The Unit Title in Workbook should be exactly same as the Title given in SLM.
3. It is best practice to have 10 questions per Unit. The author can have the Title Unit#: <Unit
Name> followed by 10 questions.
4. Among the questions, 40% should be concept based and 60% should be case study/situation
based. More focus can be given for application-oriented questions.
5. Each question can be explained in a maximum of 4 to 5 sentences.
6. All the questions should be MCQs (Multiple Choice Questions).
7. Each question should have 5 answer choices such as a., b., c., d., e. Alternatives should be
given in a manner to make the student to think i.e. alternatives should compete each other.
8. Questions Numbers continue through units from 1, 2,.10, 11, 12.21,
22,.31,32..99,100 in sequence.
9. The author can also group some questions such as [For Questions 2-5] mentioning at the
beginning of Question 2. The case can be explained in Question 2 and further questions can
be asked in Question 3, 4, 5.
10. The author can provide Data Tables, Graphs and Figures to enrich questions and frame
questions based on the exhibits.
11. The answers to all the questions in the workbook should be in separate chapter known as
Multiple ChoiceAnswers and Explanations. They should be numbered as 1, 2, 3, .100
12. Each answer should mention the right choice a, b, c, d, e; followed by right answer and the
answer may be given in 2 or 3 sentences of descriptive explanation of the answer.
13. The author can read industry based articles relevant to the topic from sources such as Bain &
Co, Booz, McKinsey, KPMG, Deloitte, HBR, Accenture or any other reputed source and relate
questions with concepts.
14. In case of conceptual questions, introduce the industry, company and the kind of business
they do and then put the question. The author may also introduce/create the business
context or situation in an organization before asking the conceptual question. The author
may also create some organizational roles in the context and relate with concepts in SLMs.
15. The author can also give the incidents/cases from his own industry/organizational
experience. The questions should have a latest context.
16. All the concepts given in the respective SLM Unit should be covered in MCQs.
17. In a set of 10 MCQs per Unit, there should be maximum of 2 basic, minimum of 3 medium
and 3 advanced questions.
18. The question should be asked from example to concept but not vice versa. The concept
should come from the student while answering the question.
19. Creativity is necessary not only for the creation of questions but equally for the creation of
alternatives.
Basic Idea: Student should exercise his/her mind while answering the question. The
question should force him/her to learn rather than depend on past memory.
Goal: Each question should be an independent entity like a micro caselet (anecdote) with
four/five lines to represent a situation/context/concept/experience/practice/perspective etc.


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Unit 11: Product and Product Lines
111. Apple has unveiled two new iPhones, the iPhone 6 at $199 and the iPhone 6 Plus at $299
price. While both models include the same 64-bit A8 chip and the same general design, there
are several differences between the two phones. The iPhone 6 measures in at 6.9mm, while the
iPhone 6 Plus is slightly thicker at 7.1mm. Apple's iPhone 6 Plus also has three major
differentiating factors: optical image stabilization for the camera, and a longer battery life, and
an iPad-style landscape mode that displays more content on the screen. The two products
iPhone 6 and iPhone 6 Plus represent the following product personality.
a) iPhone 6 as Augemented product and iPhone 6 Plus as Potential product
b) iPhone 6 as Potential product and iPhone 6 Plus as Potential product
c) iPhone 6 as Augemented product and iPhone 6 Plus as Augumented product
d) iPhone 6 as Potential product and iPhone 6 Plus as Augumented product
e) iPhone 6 as Augemented product and iPhone 6 Plus as Expected product

112. Doctors prescribe Crocin, a drug commonly used to treat fever and pain. The main chemical
in the drug is Paracetamol. A chemist in a medical shop near All India Institutes Medical Sciences
(AIIMS), New Delhi suggests another drug that has the same chemical Paracetamol with a
cheaper price to attract more AIIMS patients. Once there is news in the press that few of the
doctors insist patients to buy prescribed brand (more expensive) drugs in order to get incentives
from pharmaceutical companies. Customers are happier with the drug suggested by the chemist
because it is more affordable and effective too. Customers also dont like to be burdened with
doctors incentives. The drug suggested by the chemist has the following product personality.

a) Expected product since customers want a cheaper product
b) Augmented product because Chemist added value into the drug
c) Potential product where the drug has more future potential
d) Generic product that avoids taxes and advertising expenses
e) Augumented product because Crocin offers more incentives to doctors

113. Chandu Tailor & Son Ltd, a London-based Gujarati Family business house, offers a Golden
Charter pre-paid funeral plan for clients. It is like an insurance for which the client pays at
todays price the premium equalling 2,299 for the basic plan. When the client passes away,
Golden Charter pays for the funeral cost from the accumulated fund. Based on the usage of the
product, Golden Charter can be classified as ---------type of product.
a) Convenience product that makes funeral more convenient
b) Shopping product where customer spends considerable time and effort before buying
funeral plan
c) Specialty product which is expensive hence planned well before the death
d) Industrial product which can be preserved for future usage after death
e) Unsought product which is purchased in the face of uncertainty of death
114. Box, headquartered in Palo Alto, Calif., has a playful take on seating arrangements as they
added swings to their office. Microsoft employees pull up a seat around the large touchscreen
tablet table. Facebook employees can take advantage of a video game room. Google keeps
some fun in mind at one of their offices as employees can literally slide from one floor down to
the next with well designed set up. The seating arrangements, large touch screen tablet table,
video game room and slide from one floor down to the next with well designed set up, etc.
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facilitate more productivity. These types of set up help office activities for better performance.
The facilitating products are called as -----------------
a) Accessory equipment
b) Consumable supplies
c) Capital equipment
d) Component parts
e) Process material

115. Colgate is a No.1 toothbrush and toothpaste brand in India with a range of products for oral
care, personal care, home care and professional oral care. The following list of products conveys
the richness of Colgate toothpaste category.
Colgate dental cream
Colgate total
Colgate visible white
Colgate sensitive
Colgate sensitive-Pro-Relief
Colgate Max Fresh
Colgate Kids Toothpaste
Colgate Herbal
Colgate Cibaca family Protection
Colgate Active Salt
Colgate Max White
Colgate Active Salt Healthy White
Colgate Optic White
Which of the following is true about the product mix of Colgate?
a) Colgate has more width but less length
b) Colgate has more depth but less consistency
c) Colgate has more depth and more consistency
d) Colgate has less width and more length
e) Colgate has more width and more consistency

116. Wipro provides a range of IT services, software solutions and research and
development services in the areas of hardware and software design to companies
worldwide. The Companys also manufactures range of products such as desktops, notebooks,
net power servers, netStor storage and super computers. It is into business segment such as
infrastructure engineering business. The Companys Others segment is centered on its mobile
construction equipment business and its material handling business. Wipros Consumer Care
and Lighting (CCL) business segment focuses on market segments in personal care and
household lighting and office products. The personal care products include deodorants and
fragrances, hair care, bath and shower, skin care and other personal care products. The
following best describes the product mix strategies of Wipro?
a) Introducing products to expand product mix into related areas
b) Introducing products to expand product mix into unrelated areas
c) Introducing products to expand product mix into related and unrelated areas
d) Eliminating products to contract product mix from unrelated to related areas
e) Eliminating products to contract product mix from related to unrelated areas

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117. Lifebuoy is a brand of soap containing phenol marketed by Hindustan Unilever Limited
(HUL). Lifebuoy has journeyed from being a chunky red bar of soap to an evolved range of
general and specialized products across formats, offering solutions in the health and hygiene
space. Lifebouy has a strong social mission, promoted through its rural hygiene
programme, Khushiyon Ki Doli, which propagates the practice of hand washing with soap to
reduce diarrheal deaths. Lifebuoy focuses on the following product mix strategy.

a) Expansion of product mix from a chunky red bar to Super fast hand wash
b) Contraction of product mix by eliminating a chunky red bar
c) Altering existing product into specialized product to reduce diarrheal deaths
d) Positioning the product in hygiene space to reduce diarrheal deaths
e) Enhancing company image by introducing premium priced hygiene soaps

118. Hyundai Motor recently launched the Grand i10 which is a car built on a different platform
and will not replace the current i10 and i20. The Grand i10 is a 'Made for India' model which will
subsequently be offered in other markets. To suit the tastes of Indian consumers, the company
has done significant changes to the model a major one is a longer wheelbase to liberate more
passenger space, with a special emphasis on rear seat comfort. Industry experts believe that the
Grand i10 could prove to be a critical car for Hyundai in its attempt to compete against the likes
of Maruti Suzuki Swift. Hyundai wanted to manage its product line length in India with the
following strategy.
a) Line stretching by launching Grand i10
b) Line filling by introducing Grand i10
c) Line modernization by launching Grand i10
d) Line pruning by introducing Grand i10
e) Line extension by Grand i10 to compete against Maruti Suzuki Swift

119. LG Electronics (LG) has unveiled LG Smart Home at IFA 2014 in Berlin, the global trade show
for consumer electronics. LG Smart Home is built around the idea of unifying multiple smart
appliances into a single, cohesive system in order to increase convenience and simplicity. LG
Smart Home users can enjoy integrated control of their smart home ecosystem, as well as
intelligent time- and energy-saving modes such as Leaving Home, Coming Home or
Vacation. Which of the following strategy does LG follow if the product is priced very high?
a) Rapid skimming to take out more money from customers
b) Slow skimming to increase customer base slowly
c) Rapid penetration to increase customer base fast
d) Slow penetration to increase customer base slowly
e) Rapid skimming and slow penetration to exploit few customers

120. Mrs. D Sangeetha Reddy, Vice President and Cluster Head, Radio Mirchi(Karnataka and
Kerala) said, A lot of companies have chosen to downsize, and may be that was right thing for
them. We chose a different path. Our belief was that if we kept putting great products in front
of customers, they would continue to open their wallets while remembering Steve Jobs quote
on new product development. She also advised students to visit the museum for new product
failures in Washington DC. She also shared various examples of companies that have failed to
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place the products in a new way before the market for their sustainability. Where do you place
Radio Mirchi on product life cycle?

a) Introduction stage because Radio Mirchi is new to customers
b) Growth stage because Radio Mirchi is innovating consistently to attract more customers
c) Maturity stage because Radio Mirchi is not able to attract new customers
d) Decline stage because Radio Mirchi is getting competition from TV channels
e) Death stage because Radio Mirchi is no more existing in the market













Multiple Choice Answers and Explanations
Unit 11: Product and Product Lines

111. (b). iPhone 6 as Potential product and iPhone 6 Plus as Potential product.
Potential products include all the improvements that are possible under given technological,
economic and competitive conditions.
112. (d). Generic product that avoids taxes and advertising expenses. Generic products do
not come in fancy packaging and are not branded to avoid taxes. They are also offered at a
cheaper price because it is sold through word-of-mouth so that advertising expenses can be
avoided.
113. (e). Unsought product that is purchased in the face of uncertainty. Customers buy
funeral plans out of uncertainties that are unsought occasions hence are treated as
unsought products.

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114. (a). Accessory equipment. Products that help in production or office activities are
known as accessories.
115. (c). Colgate has more depth and more consistency. Depth is the assortment of sizes,
colors, and variations offered in each product in the product line. Consistency refers to the
closeness exhibited by the product lines.
116. (c). Introducing products to expand product mix into related and unrelated areas.
Wipro has been introducing variety of products to expand product mix into related and
unrelated areas
117. (d). Positioning the product in hygiene space to reduce diarrheal deaths. Educating
customers about the practice of hand washing with soap to reduce diarrheal deaths.
Lifebuoy is focusing on the health and hygiene space.
118. (b). Line filling by introducing Grand i10. Hyundai wanted to serve different levels of
customer segments by identifying gaps among segments.
119. (a). Rapid skimming to take out more money from customers. Companies price
their products very high and also promote the products at a higher level during rapid
skimming strategy.
120. (b). Growth stage because Radio Mirchi is innovating consistently to attract more
customers. Radio Mirchi is adding innovating programs to increase customer base.