Question 1

A relatively formal sales forecasting method that gathers, evaluates, and summarizes expert opinions as the basis for a forecast is the ________.

Accepted Answer

The Delphi method is a sales forecasting method that involves gathering opinions from a group of experts without them being influenced by each other. The experts provide opinions anonymously and the results are aggregated to form the basis for the forecast. This method is relatively formal and can be useful when there is a lack of historical data or when the future is uncertain.

Question 2

In the ________ stage, the sales of a product are just beginning to build.

Accepted Answer

In the introduction stage of the product life cycle, sales are just beginning to build as the product is introduced to the market. This stage is characterized by high advertising and promotion expenses as companies work to create awareness and generate interest in the new product. As sales begin to increase, the product moves into the growth stage. The decline, maturity, and saturation stages come later in the product life cycle.

Question 3

In the product life cycle, which of the following stages typically follows the maturity stage?

Accepted Answer

The answer of In the product life cycle, which of...

Question 4

Which of the following is a characteristic of the Delphi method?

Accepted Answer

The Delphi method is a more formal method of collecting expert opinions through a series of questionnaires and feedback rounds, as compared to the jury of executive opinion method.

Question 5

The regression method is a ________ method of sales forecasting.

Accepted Answer

The regression method is a quantitative method of sales forecasting which involves using historical data to identify patterns and trends in order to make predictions about future sales. This method calculates the relationship between the dependent variable (sales) and one or more independent variables (such as time, price, advertising expenditure, etc.) to generate a forecast.

Question 6

The two popular scheduling techniques are ________.

Accepted Answer

The two popular scheduling techniques are Gantt charts and Program Evaluation and Review Technique (PERT). Option C correctly identifies these two techniques. The Delphi method and the jury of executive opinion method are not scheduling techniques but rather forecasting techniques in project management.

Question 7

In which of the following stages do product sales continue to climb because of the fact that the product has been in the marketplace for some time and has become more accepted by the people?

Accepted Answer

In the growth stage, product sales continue to climb as the product gains acceptance and more customers become aware of it.

Question 8

The ________ method predicts future sales by analyzing the historical relationship between sales and time.

Accepted Answer

The regression method is used to analyze the historical relationship between sales and time in order to predict future sales. This method uses statistical techniques to identify patterns and trends in past data, and then applies them to predict future sales levels. Moving average is another method used to smooth out fluctuations in data, but it does not specifically analyze the relationship between sales and time. Salesforce estimation and Delphi are both methods used to gather input from experts or salespeople, while product stages refer to the different stages of a product's lifecycle.

Question 9

In which of the following sales forecasting methods do managers within the organization assemble to discuss their opinions on what will happen to sales in the future?

Accepted Answer

The jury of executive opinion method is the sales forecasting method in which managers within the organization assemble to discuss their opinions on what will happen to sales in the future. Therefore, the correct answer is D.

Question 10

The ________ method utilizes historical data to predict future sales levels.

Accepted Answer

The moving average method is a time series forecasting technique that takes the average of a fixed number of past data points and uses it to predict future data points. Therefore, it utilizes historical data to predict future sales levels. The other methods listed (jury of executive opinion, regression, product stages, and salesforce estimation) may involve some elements of historical data analysis, but they are not primarily focused on forecasting future sales levels based on past data.

Question 11

In which of the following methods of sales forecasting, do the forecasters compute average sales levels for x historical time periods and are also in a position to choose the number of time periods that best fit their situations?

Accepted Answer

The moving average method involves computing average sales levels for x historical time periods, with the option of selecting the number of time periods that best fit the situation. This method is useful when there is no clear trend or seasonality in sales data. The regression method involves using historical sales data to identify relationships between sales and other variables, and using these relationships to forecast future sales. The product stages method involves segmenting the product lifecycle into stages and forecasting sales based on the characteristics of each stage. The salesforce estimation method involves soliciting opinions from sales representatives regarding future sales, and aggregating these opinions to generate a forecast. The Delphi method also involves expert opinions, but in a more structured and anonymous format.

Question 12

________ is the process of formulating a detailed listing of activities that must be accomplished to attain an objective, allocating the resources necessary to attain the objective, and setting up and following timetables for completing the objective.

Accepted Answer

Scheduling involves creating a detailed plan of activities, allocating resources, and establishing timelines to reach a specific objective. Influencing and leading involve motivating and guiding team members towards achieving common goals, while controlling involves monitoring and adjusting performance to ensure objectives are being met. Forecasting involves making predictions about future events and conditions.

Question 13

Which of the following is true regarding the maturity stage of the product life cycle?

Accepted Answer

Competitors enter the market during the maturity stage of the product life cycle.

Question 14

Which of the following is a characteristic of the jury of executive opinion method of sales forecasting?

Accepted Answer

The jury of executive opinion method of sales forecasting involves a group of executives coming together to discuss and analyze data and share their opinions. The resulting forecast is a blend of their informed opinions.

Question 15

Impetus Solutions developed a technology which enjoyed a successful run in the market for three years. In the last six months however, sales have started decreasing as several other competitors have entered the market and are selling the same product at a cheaper price. This has had an impact on the sales of Impetus. Which stage of the product life cycle is Impetus's product in?

Accepted Answer

Impetus's product is in the maturity stage of the product life cycle. The product has enjoyed success for three years and has reached a saturation point in the market. However, with increased competition offering cheaper prices, sales have started to decline. This is typical of the maturity stage where sales growth slows down and eventually plateaus.

Question 16

Which of the following sales forecasting methods provides the forecaster with a trend-line that best explains the historical relationship between sales and time?

Accepted Answer

The regression method involves analyzing the historical relationship between sales and time by fitting a trend-line to the data. This trend-line provides a mathematical equation that can be used to forecast future sales based on historical patterns. Therefore, it is the best choice for predicting sales trends.

Question 17

Which of the following activities is carried out during scheduling?

Accepted Answer

Scheduling involves listing out the activities that need to be accomplished to attain organizational objectives and allocating resources for those activities. The other options describe activities that may take place during planning (A, D) or production (B, C).

Question 18

What can managers do to prevent products from entering the decline stage?

Accepted Answer

Improving product quality can help prevent products from entering the decline stage by making them more appealing to consumers and increasing their perceived value.

Question 19

Sales during the ________ stage is typically due to the need to replace a worn-out product.

Accepted Answer

The answer of Sales during the ________ stage is typically...

Question 20

Which of the following is a characteristic of the decline stage of the product life cycle?

Accepted Answer

The decline stage of the product life cycle is characterized by a decrease in sales as the product is replaced by a competing product or new technology. Competitors may have already entered the market at this stage, but they are not the defining characteristic. Sales are not beginning to build, as this is the decline stage, and sales continuing to climb would indicate a growth stage, not decline. Sales due to the need to replace a worn-out product would be more characteristic of the maturity stage.

Quiz 10: Plans and Planning Tools