Topic 5.5

What is the first stage of the Product Life Cycle (PLC)?

• Growth

• Maturity

• Launch also called Introduction

• Decline

During which phases of the Product Life Cycle do competitors typically start entering the market and competition then becomes at its peak?

• Launch & Growth

• Growth & Maturity

• Maturity & Decline

• Launch & Decline

What best characterizes the Maturity phase of the Product Life Cycle?

• Rapid increase in sales and profit.

• Product is new on the market

• Sales peak and competition is intense, often leading to price reductions.

• Sales decline sharply as the product becomes obsolete.

Which type of obsolescence occurs when a product is no longer desirable due to changes in trends?

• Planned Obsolescence

• Functional Obsolescence

• Technological Obsolescence

• Style (Fashion) Obsolescence

What is Technological Obsolescence?

• A product becomes outdated due to a deliberate design to encourage repeat purchases.

• A product wears out and is no longer functional due to the unavailability of parts.

• A new function replaces an existing one, making the older one obsolete.

• A product becomes outdated due to changes in consumer tastes.

Which of the following is a challenge in predicting the Product Life Cycle?

• Sales trends are always predictable.

• Technological advancements ensure that product lifespans are stable.

• Customer demand can be unpredictable, leading to inaccuracies in predicting a product’s lifespan.

• Data analysis does not help in understanding product life cycles.

What is product versioning?

• The introduction of a completely new product to replace an older one, to appeal different market segments.

• Producing different models of the same product, with different price points, to appeal to appeal different market segments.

• The introduction of an old version of a product to replace an existing one, to appeal a specific market segment.

• Releasing multiple design of a product with identical functionality and pricing, to appeal one single market segment

What is a potential advantage of introducing new versions or generations of a product?

• It reduces the overall market spread for the company.

• It limits consumer choices to a single product.

• It allows a company to maintain consistent revenue flow by attracting different market segments.

• It increases profits by reducing demand.

What happens during the Decline phase of the Product Life Cycle?

• The product is launched and introduced to the market.

• The product experiences a rapid increase in sales and profits.

• Sales and profits drop sharply, and the product may be replaced by more advanced technology.

• The product becomes widely adopted and reaches its maximum market potential.

What is a key characteristic of the Growth phase in the Product Life Cycle?

• The product is first introduced to the market with minimal competition.

• The market becomes saturated with competitors, leading to price wars.

• Sales and profits begin to increase, and the company may introduce complementary products.

• The product faces sharp declines in sales and is eventually phased out.