Product Life Cycle

Which of the following activities does not take place during the research and development stage of the product life cycle?

• Market research

• Monitoring competitors

• Publicity

• Test marketing

The stage in a product's life cycle that requires significant investment yet often incurs losses is known as

• Decline

• Growth

• Launch

• Maturity

Features of the launch stage for most products do not include

• Extensive promotion and advertising

• Low sales volume

• Market research and development

• Negative cash flow

Products that are sold from one business to another in order to further the production process are known as

• Producer goods

• Consumer goods

• Durable goods

• Perishable goods

Possible strategies to reverse a decline in the sales of a product do not include

• Additional features added to the product, such as special or limited editions

• Expanding into new markets overseas

• Increased use of promotional strategies

•  Increasing prices to improve the image (perception)of the product

Rapid changes in technology and fashion have shortened the life cycles of product in certain industries.

• True

• False