Product Life Cycle Quiz
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Questions and Answers

What happens to product pricing strategies as the market enters the maturity stage?

  • Prices may increase or remain low based on competition. (correct)
  • All firms increase prices regardless of competition.
  • Prices are consistently reduced to increase demand.
  • Price strategies become irrelevant in this stage.

    • Which of the following strategies is recommended for firms in the growth stage of a market?

  • Avoiding adaptations based on consumer feedback.
  • Reducing distribution channels to limit market reach.
  • Focusing exclusively on repeat customers.
  • Increasing product quality and adding features. (correct)

    • During the decline phase, what typically happens to the number of buyers?

  • The market sees an influx of first-time buyers.
  • Buyers shift towards alternative products. (correct)
  • Sales might stabilize indefinitely.
  • Sales experience a significant increase.

    • What is a common characteristic of products in the maturity stage?

    <p>Products become more standardized with increased competition.</p> Signup and view all the answers

    What strategy may firms consider if they want to revitalize interest in declining products?

    <p>Improving product features.</p> Signup and view all the answers

    What should firms do with their promotion strategies when entering a rapidly growing market?

    <p>Increase promotion efforts to reach a wider audience.</p> Signup and view all the answers

    What factor contributes to the intense rivalry in the decline stage?

    <p>Sales declines leading to narrowed profit margins.</p> Signup and view all the answers

    What is the first stage of the product life cycle?

    <p>Introduction</p> Signup and view all the answers

    Which approach might a firm adopt to extend the maturity period of its product?

    <p>Enhance product features to differentiate.</p> Signup and view all the answers

    Which strategy is most commonly associated with the introduction stage of the product life cycle?

    <p>Establishing a clear brand identity through awareness</p> Signup and view all the answers

    In which stage of the product life cycle do sales grow rapidly and new buyers enter the market?

    <p>Growth</p> Signup and view all the answers

    What is meant by product mix?

    <p>The complete set of products and services offered by a firm</p> Signup and view all the answers

    What is a key characteristic of the maturity stage in the product life cycle?

    <p>Cost reductions due to economies of scale</p> Signup and view all the answers

    What is the primary focus of marketing in the introduction stage?

    <p>Acquainting buyers with the product</p> Signup and view all the answers

    Which term specifically refers to the number of products offered under a product line?

    <p>Product Depth</p> Signup and view all the answers

    What can be a potential negative effect of unnecessary product width diversification?

    <p>Weakened brand image</p> Signup and view all the answers

    During which stage is the product likely to be unprofitable due to high costs and low revenue?

    <p>Introduction</p> Signup and view all the answers

    Which action is recommended during the growth stage of the product life cycle?

    <p>Ramp up production and capital investment</p> Signup and view all the answers

    In the context of Coca-Cola's product mix, which of the following products is classified under its juice product line?

    <p>Mango</p> Signup and view all the answers

    Why is it important for a firm to maintain a high product width and depth?

    <p>To diversify product risk</p> Signup and view all the answers

    What happens to the market during the decline stage of the product life cycle?

    <p>Sales and market demand decrease</p> Signup and view all the answers

    What is a product line?

    <p>A collection of related products under the same brand</p> Signup and view all the answers

    What might be an example of negative brand extension for a company?

    <p>A luxury brand launching a budget clothing line</p> Signup and view all the answers

    Expanding the depth of a product mix primarily serves what purpose?

    <p>To better serve existing customers</p> Signup and view all the answers

    What is a strategy to potentially increase demand for a product?

    <p>Maintain the product while hoping competitors withdraw</p> Signup and view all the answers

    Which stage of the product life cycle is characterized by rapid sales growth?

    <p>Growth stage</p> Signup and view all the answers

    What might indicate a product is in decline?

    <p>Changing consumer behavior and industry trends</p> Signup and view all the answers

    What does the reverse positioning strategy involve?

    <p>Maintaining the product at its baseline state with fewer features</p> Signup and view all the answers

    How does competition change during the maturity stage?

    <p>Competition increases among existing products</p> Signup and view all the answers

    What should a company consider if it wants to 'harvest' a product?

    <p>Reduce marketing support and let profits decline</p> Signup and view all the answers

    Which of the following indicators can help determine a product’s stage in the life cycle?

    <p>Sales and market share</p> Signup and view all the answers

    What is a potential outcome when a product's profitability disappears?

    <p>Unveil a successor product</p> Signup and view all the answers

    What is the primary feature of IKEA's reverse positioning?

    <p>Creating a unique in-store experience without typical assistance</p> Signup and view all the answers

    How did Swatch redefine its product category?

    <p>By presenting watches as playful fashion accessories</p> Signup and view all the answers

    What does breakaway positioning involve?

    <p>Disrupting existing categories by associating with new ones</p> Signup and view all the answers

    What is an example of stealth positioning as a marketing strategy?

    <p>Affiliating products with a different, less tainted category</p> Signup and view all the answers

    Which of these best describes the atmosphere of an IKEA store?

    <p>Modern and airy with a unique shopping experience</p> Signup and view all the answers

    What was a key pricing strategy used by Swatch?

    <p>Launching watches at an affordable price of $40</p> Signup and view all the answers

    How did IKEA position its products on durability?

    <p>As items meant for frequent replacement</p> Signup and view all the answers

    What is a common outcome of breakaway positioning in a market?

    <p>Creation of new consumer preferences and trends</p> Signup and view all the answers

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