Product Life Cycle Quiz

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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?

Products become more standardized with increased competition. (B) Signup and view all the answers

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

Improving product features. (A) Signup and view all the answers

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

Increase promotion efforts to reach a wider audience. (D) Signup and view all the answers

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

Sales declines leading to narrowed profit margins. (A) Signup and view all the answers

What is the first stage of the product life cycle?

Introduction (D) Signup and view all the answers

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

Enhance product features to differentiate. (C) Signup and view all the answers

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

Establishing a clear brand identity through awareness (A) Signup and view all the answers

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

Growth (C) Signup and view all the answers

What is meant by product mix?

The complete set of products and services offered by a firm (A) Signup and view all the answers

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

Cost reductions due to economies of scale (C) Signup and view all the answers

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

Acquainting buyers with the product (C) Signup and view all the answers

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

Product Depth (B) Signup and view all the answers

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

Weakened brand image (D) Signup and view all the answers

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

Introduction (A) Signup and view all the answers

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

Ramp up production and capital investment (B) 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?

Mango (B) Signup and view all the answers

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

To diversify product risk (D) Signup and view all the answers

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

Sales and market demand decrease (C) Signup and view all the answers

What is a product line?

A collection of related products under the same brand (A) Signup and view all the answers

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

A luxury brand launching a budget clothing line (C) Signup and view all the answers

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

To better serve existing customers (C) Signup and view all the answers

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

Maintain the product while hoping competitors withdraw (C) Signup and view all the answers

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

Growth stage (D) Signup and view all the answers

What might indicate a product is in decline?

Changing consumer behavior and industry trends (D) Signup and view all the answers

What does the reverse positioning strategy involve?

Maintaining the product at its baseline state with fewer features (C) Signup and view all the answers

How does competition change during the maturity stage?

Competition increases among existing products (A) Signup and view all the answers

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

Reduce marketing support and let profits decline (D) Signup and view all the answers

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

Sales and market share (B) Signup and view all the answers

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

Unveil a successor product (C) Signup and view all the answers

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

Creating a unique in-store experience without typical assistance (C) Signup and view all the answers

How did Swatch redefine its product category?

By presenting watches as playful fashion accessories (D) Signup and view all the answers

What does breakaway positioning involve?

Disrupting existing categories by associating with new ones (A) Signup and view all the answers

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

Affiliating products with a different, less tainted category (C) Signup and view all the answers

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

Modern and airy with a unique shopping experience (D) Signup and view all the answers

What was a key pricing strategy used by Swatch?

Launching watches at an affordable price of $40 (A) Signup and view all the answers

How did IKEA position its products on durability?

As items meant for frequent replacement (B) Signup and view all the answers

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

Creation of new consumer preferences and trends (A) Signup and view all the answers

Maturity Stage Pricing

Pricing strategies in the maturity stage of a product's life cycle can either increase or stay low depending on competition.

Growth Stage Strategy

In the growth stage, firms improve product quality and add features.