Understanding the Product Life Cycle

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 extension strategy that involves changing the appearance of a product?

• Price reduction

• Updating packaging

• Advertising

• Changing target market

At which stage of the product life cycle is a product likely to face the most competition?

• Introduction

• Growth

• Maturity

• Decline

Which extension strategy involves targeting a different group of consumers?

• Adding more features

• Changing target market

• Advertising

• Price reduction

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

• To increase production costs

• To extend the product's life in the market

• To decrease the product's quality

• To eliminate competition

Which stage of the product life cycle is characterised by declining sales and profits?

• Introduction

• Growth

• Maturity

• Decline

Which of the following is NOT an extension strategy?

• Updating packaging

• Adding more features

• Increasing production costs

• Advertising

How might demand for a product change during the maturity stage of the product life cycle?

• Demand increases rapidly

• Demand remains stable or starts to decline

• Demand is non-existent

• Demand decreases rapidly

When is it most suitable to implement a price reduction as an extension strategy?

• During the introduction stage

• During the growth stage

• During the maturity or decline stage

• During the research and development stage