Product Life Cycle

Firms with a technically superior good may well engage in price skimming. This comment could apply to which stage of the Product Life Cycle?

• Introduction
• Growth
• Decline
• Maturity

What is the MAIN purpose of using a PLC?

• to help with staffing issues

• to improve customer service

• to help make better marketing decisions over time

• to lift salaries for directors

An established product which is bringing in revenue is a comment about which stage of the Product Life Cycle?

• Decline
• Maturity
• Introduction
• Growth

Which stage has the least production costs?

• introduction

• maturity

• decline

• growth

What stage has a number of prototypes?

• introduction

• growth

• maturity

• decline

• Development

What happens to the cash flow of a business at the growth stage of the product life cycle?

• The cash flow should become more positive
• Cash flow is likely to be negative because money has to be spent on research and development
• Sales will fall and cash flow will drop
• There may be a need to spend money re-promoting the product. As a result, cash flow may begin to fall.

What stage would Netflix be in?

• introduction

• growth

• maturity

• decline

Which one of the following is a benefit of new product development?

• It is cheaper to develop a new products
• The latest technology can be a feature of the new product
• Customers will always prefer newly developed products

Which stage has economies of scale?

• introduction

• growth

• maturity

• decline

Which stage has rapid sales?

• introduction

• maturity

• decline

• growth