Question 1

Most products in the marketplace are in the ________ stage of the product life cycle.
A) growth
B) decline
C) maturity
D) introduction
E) development

Accepted Answer

Most products have already gone through the introduction and development stages before hitting the marketplace, and growth is usually considered a short period before reaching maturity. Therefore, the majority of products in the marketplace are in the maturity stage, where sales are still steady but may not be growing at the same rate as before.

Question 2

Which stage in the PLC normally lasts longest and poses strong challenges to marketing managers?
A) growth
B) decline
C) maturity
D) introduction
E) adoption

Accepted Answer

The maturity stage in the PLC normally lasts the longest and poses strong challenges to marketing managers because the market becomes saturated, competition increases, and sales growth slows down. This requires marketing managers to find new ways to differentiate their product from competitors and to maintain market share. Additionally, the cost of promotion and distribution may increase, making it harder to maintain profitability.

Question 3

Which of the following stages of the PLC is characterized with high promotional expenditures that result from an effort to create consumer awareness?
A) growth
B) product development
C) maturity
D) introduction
E) decline

Accepted Answer

The introduction stage is characterized by high promotional expenditures as the company tries to create consumer awareness of the new product. In this stage, sales may be low, and the company is focused on establishing a market for the product.

Question 4

The more formal "business attire" look of corporate dress of the 1980s and 1990s gave way to the "business casual" look of the 2000s. This is an example of a ________.
A) style
B) fashion
C) fad
D) subculture
E) norm

Accepted Answer

The shift from formal business attire to business casual is an example of a fashion trend. A fashion trend refers to a style that gains popularity over time and becomes widely accepted among a particular group or society. In this case, the trend of dressing less formally in the workplace gained popularity in the 2000s and became widely accepted as a norm for business attire.

Question 5

A style is best defined as a ________.
A) currently popular trend in retail goods
B) popular consumer taste at a given time
C) temporary period of unusually high sales
D) short-term component of the marketing mix
E) basic and distinctive mode of expression

Accepted Answer

A style is a basic and distinctive mode of expression in design, art, fashion, or other areas of creative expression. It is not necessarily tied to current trends or consumer tastes, and it is not a temporary phenomenon or a component of the marketing mix.

Question 6

________ is the product life cycle period when sales fall off and profits drop.
A) Introduction
B) Growth
C) Maturity
D) Decline
E) Product development

Accepted Answer

The decline period is the stage in the product life cycle when sales start to fall off and profits drop. This can be caused by a variety of factors, such as market saturation, technological advances, or changes in consumer preferences. During this stage, companies may need to consider strategies such as cost reduction, product differentiation, or discontinuing the product altogether.

Question 7

A company can install a(n) ________ management system to collect, review, evaluate, and manage new-product ideas.
A) quality
B) innovation
C) content
D) supply chain
E) customer relationship

Accepted Answer

An innovation management system would be best suited for collecting and managing new-product ideas. This type of system would focus on promoting and tracking new ideas and innovations within the company, allowing for a streamlined process of evaluating and managing potential new products.

Question 8

Some products that have entered the decline stage have been cycled back to the growth stage through ________.
A) repositioning
B) ambush marketing
C) proximity mapping
D) dumping
E) offshoring

Accepted Answer

Repositioning involves changing a product's image or marketing strategy to make it more appealing to consumers and can help to cycle a product back to the growth stage.

Question 9

According to the PLC, the ________ stage is reached when sales plunge to zero, or when they drop to a low level where they continue for many years.
A) laggard
B) decline
C) maturity
D) growth
E) incubation

Accepted Answer

The decline stage is the final stage in the PLC and is characterized by a significant drop in sales. In this stage, a product's market becomes saturated, and competition increases, leading to a decrease in sales.

Question 10

Flurrbies, a brand of unique winter accessories that quickly fell in and out of favorability with customers, is an example of a ________.
A) style
B) fashion
C) fad
D) norm
E) subculture

Accepted Answer

Flurrbies were a short-lived trend that experienced a sudden surge in popularity but quickly faded away, which is characteristic of a fad.

Question 11

Which stage in the product life cycle is characterized by rapid market acceptance and increasing profits?
A) introduction
B) maturity
C) growth
D) decline
E) product development

Accepted Answer

The growth stage in the product life cycle is characterized by rapid market acceptance, increasing sales and profits, and competition entering the market. At this stage, consumer demand is increasing, and there is a need for companies to expand production and distribution to keep up with demand.

Question 12

Which of the following stages of the PLC is characterized with the same level or slightly higher level of promotional expenditures in an attempt to respond to increasing competition?
A) growth
B) decline
C) maturity
D) product development
E) adoption

Accepted Answer

The answer of Which of the following stages of the...

Question 13

The innovation management system approach yields two favorable outcomes: it helps create an innovation-oriented company culture, and it ________.
A) clearly assigns responsibility for the process to a single department
B) yields a larger number of new-product ideas
C) guarantees successful products
D) frees up senior management time
E) requires less budget support

Accepted Answer

The innovation management system approach helps to create an innovation-oriented company culture, which in turn leads to a larger number of new-product ideas. However, it does not guarantee successful products, assign responsibility to a single department, free up senior management time, or require less budget support.

Question 14

Which of the following statements characterizes the introduction stage of the PLC?
A) There are increased marketing outlays.
B) Profits are nonexistent.
C) The company incurs minimal expenses.
D) The product achieves acceptance by most potential buyers.
E) Promotional expenditures are zero.

Accepted Answer

The answer of Which of the following statements characterizes the...

Question 15

Kellogg's begins to sell its cereals in new markets after conducting extensive marketing research. After the cereal begins to appear in these new markets, the company increases its promotion expenditure to check competition. Kellogg's is in the ________ stage of the product life cycle.
A) introduction
B) growth
C) maturity
D) decline
E) adoption

Accepted Answer

Kellogg's is in the growth stage since the company is expanding into new markets and increasing its promotion expenditure to check competition, which is typical during the growth stage of the product life cycle. The introduction stage is when the product is first launched in the market, and the company focuses on creating awareness and developing a market. The maturity stage is when sales growth slows down, and the focus is on retaining market share. The decline stage is when sales decline, and the product becomes less profitable, leading to a possible phasing out. Adoption is not a stage of the product life cycle but refers to the process of customers accepting and buying the product.

Question 16

Which term refers to the course that a product's sales and profits take over its lifetime?
A) total product process
B) service life
C) product mix
D) product life cycle
E) marketing mix

Accepted Answer

The term that refers to the course that a product's sales and profits take over its lifetime is the product life cycle. The product life cycle describes the stages a product goes through from introduction to growth, maturity, and eventual decline, and helps companies understand how to manage and market their products effectively at each stage.

Question 17

Which of the following would lead to greater competition in the maturity stage of the PLC?
A) overcapacity
B) market pioneers
C) poor management
D) inadequate promotion
E) diminishing budgets

Accepted Answer

In the maturity stage of the PLC, the market becomes saturated and there may be overcapacity. This would lead to greater competition as companies have to fight for market share and may resort to price reductions or other strategies to differentiate themselves from competitors. Market pioneers (B) and adequate promotion (D) are more important in the introduction and growth stages of the PLC. Poor management (C) and diminishing budgets (E) may lead to a decline in sales and revenue in the decline stage of the PLC.

Question 18

Which of the following best characterizes the decline stage of product development?
A) rapid market acceptance
B) slow sales growth
C) sales and profits decline
D) high investment costs
E) increasing profits

Accepted Answer

In the decline stage of product development, sales and profits decline as the product loses market appeal and/or becomes obsolete.

Question 19

The PLC concept can be applied by marketers as a useful framework for describing how ________.
A) competitors' moves are predicted
B) marketing strategies are developed
C) products and markets work
D) concept testing is conducted
E) product ideas are developed

Accepted Answer

The Product Life Cycle concept is a framework that explains the different stages a product goes through in the market, from introduction to growth, maturity, and decline. It describes how products and markets work, and therefore can be applied by marketers to develop strategies that are appropriate for each stage of the product life cycle.

Question 20

Big Moose Toys is a market pioneer introducing a modern version of Bubble the Moose, a character from an animated television series originally broadcast in the '50s and '60s. The company's version of Sandy the Flying Squirrel, a character from the show targeted to baby boomers, was a strong success. Since the firm is a market pioneer, it needs to make the new launch strategy for Bubble consistent with the intended ________.
A) pricing
B) product positioning
C) brand extension
D) prototype
E) fad

Accepted Answer

As a market pioneer, Big Moose Toys needs to ensure that the new launch strategy for Bubble the Moose is consistent with the intended product positioning. This means that the company needs to consider how they want consumers to perceive the product in relation to its competitors and how it fits into the market overall. Other factors such as pricing and brand extension may also be important, but ultimately, product positioning will have the greatest impact on the success of the launch.

Quiz 9: New-Product Development and Product Life Cycle Strategies

Most products in the marketplace are in the ________ stage of the product life cycle.

Which stage in the PLC normally lasts longest and poses strong challenges to marketing managers?

Which of the following stages of the PLC is characterized with high promotional expenditures that result from an effort to create consumer awareness?

The more formal "business attire" look of corporate dress of the 1980s and 1990s gave way to the "business casual" look of the 2000s. This is an example of a ________.

A style is best defined as a ________.

________ is the product life cycle period when sales fall off and profits drop.

A company can install a(n) ________ management system to collect, review, evaluate, and manage new-product ideas.

Some products that have entered the decline stage have been cycled back to the growth stage through ________.

According to the PLC, the ________ stage is reached when sales plunge to zero, or when they drop to a low level where they continue for many years.

Flurrbies, a brand of unique winter accessories that quickly fell in and out of favorability with customers, is an example of a ________.

Which stage in the product life cycle is characterized by rapid market acceptance and increasing profits?

Which of the following stages of the PLC is characterized with the same level or slightly higher level of promotional expenditures in an attempt to respond to increasing competition?

The innovation management system approach yields two favorable outcomes: it helps create an innovation-oriented company culture, and it ________.

Which of the following statements characterizes the introduction stage of the PLC?

Kellogg's begins to sell its cereals in new markets after conducting extensive marketing research. After the cereal begins to appear in these new markets, the company increases its promotion expenditure to check competition. Kellogg's is in the ________ stage of the product life cycle.

Which term refers to the course that a product's sales and profits take over its lifetime?

Which of the following would lead to greater competition in the maturity stage of the PLC?

Which of the following best characterizes the decline stage of product development?

The PLC concept can be applied by marketers as a useful framework for describing how ________.