Eduqas A Level Business - Product Life Cycle

Which one is NOT a stage in the PLC?

• maturity

• decline

• growth

• development

Which stage has rapid sales?

• introduction

• maturity

• decline

• growth

Which stage has lots of competitors?

• growth

• maturity

• introduction

• decline

What is a product extension?

• longer production time

• products with extension features

• strategies to keep the product from declining

• products that keep going through the different stages

The product life cycle shows the different stages that a product passes through and sales that can be expected at each stage

• True
• False

What is happening at point F on the Product Life Cycle?

• Introduction
• Decline
• Maturity
• Growth

Which of these are extension strategies of a product?

• Cut price
• Modify the product
• All of these
• Special Offers

Which of these comments is most suitable for Growth?

• Heavy investment but no sales
• Sales are likely to be low as the product is new to the market
• Revenue is increasing as the product gains popularity
• Likely to be characterised as a dog in the Boston Matrix

Firms with a technically superior good may well engage in price skimming. This comment could apply to which stage of the Product Life Cycle?

• Introduction
• Growth
• Decline
• Maturity

What happens to the cash flow of a business at the growth stage of the product life cycle?

• The cash flow should become more positive
• Cash flow is likely to be negative because money has to be spent on research and development
• Sales will fall and cash flow will drop
• There may be a need to spend money re-promoting the product. As a result, cash flow may begin to fall.