Question 1

Which of the following is an indication that a product is shifting from the growth to the maturity stage of the product life cycle?&#10;A) increasing product interest&#10;B) decreasing price competition&#10;C) increasing buyer sophistication&#10;D) decreasing number of substitutes

Accepted Answer

During the maturity stage of the product life cycle, the market has typically become saturated, and buyers are more knowledgeable about the product, leading to increased buyer sophistication. This reflects a deeper understanding of the product's features, benefits, and value, often resulting in more discerning purchasing decisions.

Question 2

Which of the following is LEAST likely to occur during commoditization?&#10;A) Competitive advantages come from cost leadership.&#10;B) Customer loyalty and brand preferences increase.&#10;C) Product differentiation becomes difficult.&#10;D) Competition is mainly based on price.

Accepted Answer

During commoditization, products become homogenous and customers have less reason to be loyal to any particular brand. As a result, customer loyalty and brand preferences are less likely to increase. The other options (A, C, D) are all likely to occur during commoditization.

Question 3

Single segments are more likely to split into multiple segments during the growth stage of the product life cycle as customer needs become increasingly specific.

Accepted Answer

As the product life cycle progresses, customer needs become more diverse and specific, making it more likely for single segments to split into multiple segments. This is because businesses may need to tailor their offerings to meet the specific needs of each sub-segment, resulting in the segment becoming more and more specific over time.

Question 4

During the development and introduction stages of the product life cycle,consumers are primarily interested in the ________ of a product.&#10;A) performance&#10;B) appearance&#10;C) convenience&#10;D) price

Accepted Answer

During the development and introduction stages, consumers are mostly interested in the performance of the product. This is because the product is new and consumers want to know how well it works or solves their problem. Appearance, convenience, and price become more important in the later stages of the product life cycle.

Question 5

In which stage of the product life cycle would a firm most likely use price promotions and reminder advertising to encourage customers to replace worn-out items?&#10;A) growth&#10;B) decline&#10;C) maturity&#10;D) introduction

Accepted Answer

During the maturity stage, the market for the product becomes saturated, and competition increases. To encourage customers to replace worn-out items, a firm may use price promotions and reminder advertising to remind customers of their need to replace the product. Reminder advertising helps ensure that the product stays top-of-mind for customers, while price promotions can incentivize customers to choose one brand over another. In the decline stage, firms may decrease the amount of advertising and promotions as the market decreases, and in the growth stage, promotions may not be necessary as demand is already increasing.

Question 6

The maturity stage of the product life cycle is typically characterized by a slowdown in sales growth.

Accepted Answer

The maturity stage of the product life cycle is typically characterized by a slowdown in sales growth as the product has reached its peak level of acceptance and most potential customers have already purchased it.

Question 7

During the introductory and growth stages,consumers are typically price sensitive due to their uncertainty about new products.

Accepted Answer

During the introductory and growth stages, consumers may be less price sensitive because the novelty and unique features of the product can outweigh price concerns, especially among early adopters.

Question 8

Which of the following would most likely increase competition during the maturity stage of the product life cycle?&#10;A) differentiation&#10;B) excess capacity&#10;C) commercialization&#10;D) inadequate promotion

Accepted Answer

Excess capacity refers to the situation where there is more supply than demand for a product, leading to increased competition among firms. This is particularly relevant in the maturity stage of the product life cycle, where the market is saturated and firms must compete on price and quality to maintain their market share. Differentiation, commercialization, and inadequate promotion are unlikely to increase competition during this stage.

Question 9

Which of the following would most likely delay commoditization?&#10;A) selling product accessories online&#10;B) developing a new marketing mix&#10;C) upgrading an existing product&#10;D) lowering the price of a product

Accepted Answer

Upgrading an existing product can delay commoditization by making it stand out from competitors and adding value to the product for consumers. Selling product accessories online may provide some differentiation, but it is not as significant as product upgrades. Developing a new marketing mix may improve sales, but it does not directly address commoditization. Lowering the price of a product can backfire and lead to a race to the bottom with competitors, ultimately accelerating commoditization.

Question 10

In which stage of the product life cycle would an industry most likely experience negative profitability?&#10;A) growth&#10;B) decline&#10;C) maturity&#10;D) introduction

Accepted Answer

During the introduction stage, companies often experience negative profitability due to high initial costs for marketing, production, and distribution, while sales are still low.

Question 11

What factors typically lead to price-based competition in the product life cycle?

Accepted Answer

The answer of What factors typically lead to price-based competition...

Question 12

The product life cycle framework is most likely used by marketers to describe how ________.&#10;A) products and markets function&#10;B) product ideas are developed&#10;C) product quality is measured&#10;D) product testing is handled

Accepted Answer

The answer of The product life cycle framework is most...

Question 13

Which of the following is NOT a characteristic included in Kano's model of customer satisfaction?&#10;A) delighters&#10;B) must haves&#10;C) reliability functions&#10;D) performance factors

Accepted Answer

The answer of Which of the following is NOT a...

Question 14

During which stage of the product life cycle,would a marketer most likely rely on word-of-mouth product promotions?&#10;A) growth&#10;B) decline&#10;C) maturity&#10;D) introduction

Accepted Answer

The answer of During which stage of the product life...

Deck 9: Note : the Product Life Cycle