Font size
WorksheetsProducts
Total questions: 13
Worksheet time: 7mins
Lucozade, originally a product for the sick, rebranded itself as an energy and sports drink. The most likely extension strategy used was:
Changing the recipe of the drink
Lowering the price
Finding new uses for the product
Raising the price
When developing a new product, a business will consider how the product looks and feels. This would be classed as its:
Function
Aesthetics
Cost
Design mix
At which stage of the product life cycle is a business most likely to use an extension strategy?
Introduction
Growth
Maturity
Decline
At which stage of the product life cycle are product sales most likely to be at their highest?
Introduction
Growth
Maturity
Decline
The product life cycle measures the:
Price of a product over time
Cost of a product over time
Profit of a product over time
Sales of a product over time
A product at the introduction stage of the product life cycle is most likely to need:
Low promotional spend
No promotional spend
High promotional spend
Reduced promotional spend
At which stage of the product life cycle is customer awareness likely to significantly increase and sales rise steeply?
Introduction
Growth
Maturity
Decline
When a business develops a product that is unique to rival products, it is best known as:
Diversification
An extension strategy
Product differentiation
Product portfolio
Which of the following statements best describes the term aesthetics?
Seeking to minimise costs wherever possible
How well the product works for the customer
Actions to prevent a product’s sales declining rapidly
How the product appeals to the senses of a customer
A well-known brand of breakfast cereal uses promotion to encourage its existing consumers to eat its product at breakfast, dinner and tea. This is an example of which of the following extension strategies?
Adding new features to the product
Encouraging use on more occasions
Changing the appearance of the product
Changing the price
At which stage of the product life cycle is sales growth likely to flatten out?
Introduction
Growth
Maturity
Decline
Which two of the following are benefits to a business that operates in a competitive market of selling a differentiated product?
High profits are guaranteed
Sales volume will be always be higher than rival products
Every customer will be happy to pay a high price for the product
Increased chance of attracting more sales
The possibility of setting a higher price
Which two of the following are risks to a business when developing a new product?
Product success is not guaranteed
New products can be protected through legal means
The business has an advantage over competitors
Development costs have to be met regardless of product success
The business can always charge higher prices for a new product
