Product Life Cycle Stages Quiz

In the maturity stage, sales and profit reach their peak and market share remains high.

In the decline stage of a product, market growth is fast and market share increases.

A 'Cash Cow' product is characterized by increasing expenses due to high investments.

Products like detergents, toothpaste or perfumes usually have a short life cycle.

The Ansoff Matrix is also known as the product–market matrix or product/market expansion grid.

Product development in the Ansoff Matrix involves introducing a new product into a new market.

The Product Market Expansion Grid includes strategies such as line extension and mix extension.

Relaunch involves major changes in the product, such as changing the core ingredients.

During the Introduction phase, the product is often a 'Question Mark' with low prices to attract new customers.

In the Growth period, sales increase at a slower rate compared to costs.

Line extension involves creating a new range of products entirely different from the existing line.

The purpose of branding is only to build brand loyalty, not to distinguish a product or business from competitors.

Market development involves introducing a new product in an existing market.

Diversification is considered the least risky option for a business.

It is easy for a business to change its pricing strategy without confusing customers.

Cost-based pricing is setting the price based on demand for the product.

The break-even point is where the revenue line and the total cost line do not intersect.

Product development in the product market expansion grid involves adding new features to an existing product.