Scenario 12.2 Use the following to answer the questions.
Jonathan Moore, president of Polar Manufacturing Company, has just reviewed the performance reports for the previous year and sees that there are some areas in which the company needs to improve. He specifically feels they could do a better job in managing Polar's product mix. Jonathan calls a meeting of all the managers responsible for each of the product lines that Polar currently manufactures. The group decides that they need to eliminate the complete industrial product line of ice chests, and plan to do so by letting the product decline without any changes in the marketing strategy or product. The group also decides to delete Polar's line of personal thermal underwear; this product, however, is to be discontinued within the week due to its unprofitability. While discussing these strategies, the group has also uncovered several customer groups for which new products could be developed. The managers decide to assemble a group of people from all functional areas of the company and give them the responsibility for all aspects of the new-product development.
Refer to Scenario 12.2. The decision to delete the industrial product line of ice chests is an example of deleting a product through a(n) ____, while the decision to drop the thermal underwear line is an example of a(n) ____.
A) run-out; phase out
B) phase-out; immediate drop
C) immediate drop; run-out
D) immediate drop; phase-out
E) phase-out; run-out

Question

Quizplus · Accepted Answer

The decision to let the industrial product line of ice chests decline without any changes in marketing strategy or product is an example of a phase-out, as it involves gradually eliminating a product. The decision to discontinue the thermal underwear line within the week due to its unprofitability is an example of an immediate drop, as it involves quickly removing a product from the market.