Question：Which of the following are likely to be consequences of setting a target price for a new product or service, at the product design stage?

　　A. Reducing the quality of the product or service in order to reduce its cost.

　　B. Ensuring the profitability of the product or service over its life cycle.

　　C. Reducing the number of component elements in the new product or service.

　　D. Greater standardisation of component elements in the new product or service.

　　E. Eliminating features of the product or service that do not add value.

　　The correct answers are: Reducing the number of component elements on the new product or service; Greater standardisation of component elements in the new product or service and; Eliminating features of the product or service that do not add value.

　　解析：Aspects of target pricing are likely to be greater use of standard components, fewer component elements and the removal of features in the product or service that do not add value. The aim should not be to reduce quality, because the target price is set for a product or service that will provide specific value to the customer. Compromising on quality will reduce the added value to the customer. Target pricing is not concerned with costing over the life cycle of the product.