Understanding Product Life Cycle and Portfolio

What is the first stage of the product life cycle?

• Introduction

• Growth

• Research and Development

• Maturity

During which stage of the product life cycle is a product most likely to experience rapid sales growth?

• Introduction

• Growth

• Maturity

• Decline

Which of the following is an example of an extension strategy?

• Reducing production costs

• Updating packaging

• Increasing employee wages

• Expanding office space

In the Boston Matrix, which category represents products with high market share and high market growth?

• Stars

• Cash Cows

• Question Marks

• Dogs

What is the main goal of using extension strategies in the product life cycle?

• To increase production efficiency

• To extend the product's life in the market

• To reduce employee turnover

• To improve supplier relationships

Which stage of the product life cycle is characterised by a peak in sales and profits?

• Introduction

• Growth

• Maturity

• Decline

In the Boston Matrix, which category is associated with products that have low market share and low market growth?

• Stars

• Cash Cows

• Question Marks

• Dogs

Which of the following is NOT a typical extension strategy?

• Adding more features

• Changing target market

• Increasing production costs

• Advertising

What does the 'Cash Cows' category in the Boston Matrix signify?

• High market share, high market growth

• High market share, low market growth

• Low market share, high market growth

• Low market share, low market growth

Which stage of the product life cycle typically involves the highest level of advertising expenditure?

• Introduction

• Growth

• Maturity

• Decline