Chapter 12

Product life cycle describes the stages a product will pass through from its introduction, through its growth until its maturity and decline.

• True

• False

Which of the following shows the correct product life stages of the product life cycle?

• Development --Introduction --> Maturity --> Saturation --> Decline

• Development --> Introduction --> Maturity --> Growth --> Saturation

• Development --> Introduction --> Maturity --> Growth --> Saturation -> Decline

• Development --> Introduction --> Growth --> Maturity --> Saturation

At the _______________ stage, the product is launched to the market.

• Development

• Introduction

• Maturity

• Growth

Profit starts to be made at the __________ stage.

• Introduction

• Maturity

• Profitable

• Growth

At the _____________ stage, profits will start to fall.

• Maturity

• Decline

• Saturation

• End

Market research is done at the _____________ stage.

• Beginning

• Development

• Introduction

• End

When the product is at the saturation stage, the owner can consider adopting ____________ strategies.

• extension

• prolonging

• value added

• sales

Which of the following is NOT an extension strategy?

• Use a new advertising campaign

• Make small changes to the products’ design, colors or packaging

• Increase price of the product

• Sell through additional different retail outlet

Packaging is important because it___________ (You can choose more than 1 answer)

• is easy to transport the product

• Carries information about the product

• is suitable for the product to fit in

• shows customers how expensive the brand is .

Cost and benefit of developing a product. Costs refer to the _____________ and benefit refers to the _____________.

• Disadvantage, Advantage

• Advantage, Disadvantage