Product line and product mix decisions MCQs With Answer

Introduction: Product line and product mix decisions are vital parts of pharmaceutical marketing and product management for B.Pharm students. Understanding terms like product line, product mix (or product portfolio), product width, product length, product depth, and consistency helps pharmacists plan formulations, strengths, dosage forms, packaging, regulatory compliance, and brand strategy. These decisions influence inventory, SKU rationalization, lifecycle management, line extensions, line stretching or pruning, pricing, and promotional tactics in pharmaceutical companies. Grasping these concepts supports rational product development, minimizes cannibalization, and aligns therapeutic needs with market segments. Now let’s test your knowledge with 30 MCQs on this topic.

Q1. Which term describes the total number of distinct product lines a pharmaceutical company offers?

  • Product length
  • Product width
  • Product depth
  • Product consistency

Correct Answer: Product width

Q2. What does product depth refer to in a pharmaceutical product line?

  • The number of product lines a firm carries
  • The number of variants offered within a single product line
  • The total number of SKUs in the portfolio
  • The similarity between product lines

Correct Answer: The number of variants offered within a single product line

Q3. Product length in a product mix is defined as:

  • The number of product lines
  • The total number of items or SKUs across all lines
  • The number of strengths for a dosage form
  • The degree of relatedness among lines

Correct Answer: The total number of items or SKUs across all lines

Q4. Product mix consistency means:

  • How similar the product lines are in end use, production, or distribution
  • How deep a single product line is
  • The total number of SKUs in the company
  • How many strengths a tablet is available in

Correct Answer: How similar the product lines are in end use, production, or distribution

Q5. Line extension in pharmaceuticals typically involves:

  • Introducing an entirely new therapeutic class
  • Adding a new strength, formulation, or pack size to an existing brand
  • Reducing the number of SKUs
  • Changing the active ingredient

Correct Answer: Adding a new strength, formulation, or pack size to an existing brand

Q6. Line stretching is best described as:

  • Replacing old products with new ones
  • Expanding a product line upward or downward into higher or lower price/quality segments
  • Removing weak products from the mix
  • Launching a new therapeutic class

Correct Answer: Expanding a product line upward or downward into higher or lower price/quality segments

Q7. Which decision is an example of “line filling” in a pharmaceutical company?

  • Adding a new therapeutic class of drugs
  • Introducing an intermediate pack size between existing sizes
  • Exiting an OTC market
  • Merging with another company

Correct Answer: Introducing an intermediate pack size between existing sizes

Q8. A common risk of frequent line extensions in pharma is:

  • Better regulatory approval rates
  • Increased R&D productivity
  • Cannibalization of existing products
  • Lower manufacturing complexity

Correct Answer: Cannibalization of existing products

Q9. Which of the following actions is product mix pruning?

  • Adding more strengths to a formulation
  • Discontinuing slow-moving SKUs
  • Launching a new brand extension
  • Increasing pack sizes

Correct Answer: Discontinuing slow-moving SKUs

Q10. When assessing product mix decisions, which factor is least related?

  • Regulatory requirements for each SKU
  • Clinical efficacy of active ingredients
  • Inventory holding costs
  • Color of the corporate logo

Correct Answer: Color of the corporate logo

Q11. Portfolio management in pharmaceuticals aims to:

  • Maximize the number of SKUs regardless of performance
  • Balance risk, return, and strategic fit across product lines
  • Focus only on branded OTC products
  • Eliminate all generics from the mix

Correct Answer: Balance risk, return, and strategic fit across product lines

Q12. Which product mix strategy helps reach different patient segments with the same therapeutic agent?

  • Line pruning
  • Line extension with varied dosages and formulations
  • Complete product deletion
  • Changing the active pharmaceutical ingredient

Correct Answer: Line extension with varied dosages and formulations

Q13. In pharmaceutical marketing, consistency of product mix improves:

  • Distribution efficiency and brand clarity
  • Number of unrelated product lines
  • Regulatory hurdles for each SKU
  • Counterfeit risk

Correct Answer: Distribution efficiency and brand clarity

Q14. Which of the following is a reason to add a product variant in a line?

  • To confuse prescribers
  • To address unmet dosage or formulation needs
  • To reduce production complexity
  • To avoid regulatory approval

Correct Answer: To address unmet dosage or formulation needs

Q15. A pharmaceutical company reducing the number of pack sizes to cut costs is performing:

  • Line stretching
  • Line filling
  • Line pruning
  • Brand extension

Correct Answer: Line pruning

Q16. Which metric best helps decide whether to keep or drop a slow-moving SKU?

  • Historical advertising color
  • Contribution margin and lifecycle potential
  • Number of letters in the brand name
  • CEO preference

Correct Answer: Contribution margin and lifecycle potential

Q17. When a firm adds a generic version of its branded drug to the same product mix, this is an example of:

  • Line pruning
  • Line stretching downward
  • Line extension upward
  • Product deletion

Correct Answer: Line stretching downward

Q18. Which product mix decision directly impacts manufacturing complexity the most?

  • Brand slogan
  • Depth of individual product lines (number of variants)
  • Office location
  • Logo redesign

Correct Answer: Depth of individual product lines (number of variants)

Q19. Product bundling in pharmaceuticals can be used to:

  • Decrease perceived value
  • Combine complementary products for therapeutic convenience
  • Increase regulatory complexity without benefit
  • Reduce clinical efficacy

Correct Answer: Combine complementary products for therapeutic convenience

Q20. Which is a strategic benefit of keeping a consistent product mix in related therapeutic areas?

  • Higher unrelated diversification risks
  • Better economies of scale and focused marketing
  • Lower bargaining power with suppliers
  • Increased regulatory filings for each unrelated line

Correct Answer: Better economies of scale and focused marketing

Q21. Line modernization in pharma typically involves:

  • Introducing obsolete packaging designs
  • Upgrading formulations, delivery systems, or packaging to current standards
  • Reducing therapeutic efficacy intentionally
  • Discontinuing all OTC products

Correct Answer: Upgrading formulations, delivery systems, or packaging to current standards

Q22. Which of these is most important when deciding to introduce a new dosage form into a product line?

  • Market need, patient compliance, and regulatory feasibility
  • Number of colors on the label
  • CEO’s favorite dosage form
  • Office furniture style

Correct Answer: Market need, patient compliance, and regulatory feasibility

Q23. Cannibalization refers to:

  • Gaining new market share from competitors only
  • When a new product reduces sales of the firm’s existing products
  • Complete elimination of the product mix
  • Improving manufacturer margins

Correct Answer: When a new product reduces sales of the firm’s existing products

Q24. Which product-mix change can improve regulatory efficiency and reduce duplicate filings?

  • Increasing unrelated diversification
  • Standardizing on common formulations and packaging across lines
  • Adding many unique SKUs with minor differences
  • Maintaining many obsolete strengths

Correct Answer: Standardizing on common formulations and packaging across lines

Q25. What is a primary objective of SKU rationalization in pharmaceuticals?

  • Increase shelf clutter
  • Reduce costs and improve supply chain efficiency
  • Maximize the number of manufacturing changeovers
  • Complicate distributor logistics intentionally

Correct Answer: Reduce costs and improve supply chain efficiency

Q26. In deciding product mix pricing, what should pharmaceutical firms consider?

  • Only competitor logo colors
  • Cost, value to patient, reimbursement, and market positioning
  • Number of syllables in drug name
  • Uniform pricing across all countries regardless of market

Correct Answer: Cost, value to patient, reimbursement, and market positioning

Q27. Which is an example of upward line stretching in pharmaceuticals?

  • Introducing a premium, extended-release version of a drug
  • Adding a cheaper generic of the same molecule
  • Removing higher-priced options
  • Switching to a less effective ingredient

Correct Answer: Introducing a premium, extended-release version of a drug

Q28. When planning product mix for global markets, a key consideration is:

  • Ignoring local regulatory and therapeutic needs
  • Adapting formulations, strengths, and packaging to local regulations and patient preferences
  • Using the same marketing message everywhere without change
  • Only selling the company’s oldest products

Correct Answer: Adapting formulations, strengths, and packaging to local regulations and patient preferences

Q29. Which tool helps prioritize which products to invest in within a pharmaceutical product mix?

  • BCG matrix or benefit-risk and market potential analysis
  • Coin toss
  • Number of letters in product name
  • Random selection

Correct Answer: BCG matrix or benefit-risk and market potential analysis

Q30. A successful product mix strategy in pharma balances:

  • Regulatory barriers only
  • Clinical needs, commercial potential, manufacturing feasibility, and regulatory requirements
  • Only branding and advertising spend
  • Number of packaging colors

Correct Answer: Clinical needs, commercial potential, manufacturing feasibility, and regulatory requirements

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