Product Life Cycle

What are the four main stages of the Product Life Cycle (PLC)?

• • A. Introduction, Growth, Plateau, Decline

• • B. Introduction, Expansion, Maturity, Decline

• • C. Introduction, Growth, Maturity, Decline

• • D. Inception, Growth, Peak, Decline

What does the term "Cash Cow" refer to in the Product Life Cycle?

• • A. A product that generates large profits with minimal investment.

• • B. A product that requires constant investment to maintain.

• • C. A product in its introduction stage.

• • D. A product in decline.

In the context of market saturation, what is a 'saturated market'?

• • A. A market where there is little competition.

• • B. A market where the demand is higher than the supply.

• • C. A market where there are many competitors, and growth is limited.

• • D. A market with unlimited growth potential.

Which of the following stages of the PLC typically involves high marketing costs to raise awareness?

• • A. Growth

• • B. Introduction

• • C. Maturity

• D. Decline

According to the Boston Matrix, what type of product is categorized as a 'Dog'?

• • A. A product with low market share and low growth.

• • B. A product with high market share and high growth.

• • C. A product with high market share but low growth.

• • D. A product with high growth but low market share.

Which strategy is often advised for companies when their product is in the 'Maturity' stage of the PLC?

• • A. Increase marketing efforts.

• • B. Invest in innovation to prolong the product’s life.

• • C. Gradually phase out the product.

• • D. Increase production costs.

Which of the following best describes a 'Problem Child' in the Boston Matrix?

• • A. High market share and low growth.

• • B. Low market share and high growth.

• • C. High market share and high growth.

• • D. Low market share and low growth.

What is one typical characteristic of a product in the 'Decline' stage of the Product Life Cycle?

• • A. Increasing profits.

• • B. Growing competition.

• • C. Decreasing sales.

• • D. Expanding market share.

Which of the following is an example of a 'Star' product in the Boston Matrix?

• • A. A product with high growth but low market share.

• • B. A product with high market share and high growth.

• • C. A product with high market share but low growth.

• • D. A product with low market share and low growth.

Why might a company continue to produce a 'Dog' product despite its poor performance?

• • A. To explore new markets for the product.

• • B. To retain loyal customers and prevent them from switching to competitors.

• • C. To increase overall market competition.

• • D. Because it is highly profitable.